Homework Answers
1. Amount of Quick Assets:
Quick assets are assets which can be easily converted in cash. it includes Cash, Receivables and Market investments. It may include Inventory but usually we avoid it as it take time to sell Inventories.
Quick assets = Account Receivables 65,000 + Cash 30,000 + Marketable securities 36,000 = $ 131,000
Note - if we include inventory too it amounts to (131000 + 72000) $ 203,000.. but i prefer not to include inventories.
2. Current Ratio =Current Assets / Current Liabilities
Total Current Assets = Account Receivables 65,000 + Cash 30,000 + Inventory 72,000 + prepaid Expense 2000 = $169,000
Total Current Liabilities = Accrued liabilities 38000 = $ 38,000
Current Ratio = $ 169,000 / $ 38,000 = 4.44 times
as there is no option of 4.44 Times i will prefer 4.50 times as it is nearest to correct answer
3. Working Capital
Total Current Assets = Account Receivables 65,000 + Cash 30,000 + Inventory 72,000 + prepaid Expense 2000 = $169,000
Total Current Liabilities = Accrued liabilities 38000 = $ 38,000
Working Capital = $ 169,000 - $ 38,000 = $ 131,000
as there is no option of $ 131,000 . i prefer $ 127,000 as most appropriate answer.
4. Profit Margin
Sales $ 500,000 - Cost of Good Sold $ 300,000 - Operating Expense $ 155,000 = Profit $ 45,000
Profit Margin = $ 45000 / $ 500000 = 9.00%
Add Answer to:
Marketable securities-$36.000 Accounts Receivable- $65,000 Prepaid Expenses--$2,000 Accrued Liabilities-$38,000 Sal...
Notes Payable--$105.000 Marketable securities--$36.000 Prepaid Expenses----$2.000 Sales---$500,000 Cost of Goods Sold---$300,000 Operating Expenses----$155,000 Accounts Payable---$40,000 Accounts...
Notes Payable--$105.000 Marketable securities--$36.000 Prepaid Expenses----$2.000 Sales---$500,000 Cost of Goods Sold---$300,000 Operating Expenses----$155,000 Accounts Payable---$40,000 Accounts Receivable---$65,000 Accrued Liabilities----$38,000 Cash----$30.000 Inventory----$72,000 Equipment----$150,000 Land/Building----$625,000 What is the amount of Quick Assets? O a. $205,000 O b. $203.000 O c. $131,000 O d. $ 66,000
Use the following information to answer questions 21 thru 25: Accounts Payable----$40,000 Notes Payable----$105,000 Accounts Receivable----$65,000...
Use the following information to answer questions 21 thru 25: Accounts Payable----$40,000 Notes Payable----$105,000 Accounts Receivable----$65,000 Marketable securities----$36.000 Accrued Liabilities----$38,000 Prepaid Expenses----$2.000 Cash----$30,000 Sales----$500.000 Inventory----$72,000 Cost of Goods Sold----$300,000 Equipment----$150.000 Operating Expenses----$155.000 Land/Building----5625,000 What is the amount of Quick Assets? O a. $205,000 O b. $203,000 O c. $131,000 O d. $ 66,000
16 - 17 and 18 please... Accounts payable Accounts receivable Accrued liabilities Cash Intangible assets Inventory...
16 - 17 and 18 please...
Accounts payable Accounts receivable Accrued liabilities Cash Intangible assets Inventory Long-term investments Long-term liabilities Marketable securities Notes payable (short-term) Property, plant, and equipment Prepaid expenses $ 40,000 65,000 7,000 30,000 40,000 72,000 110,000 75,000 36,000 30,000 625,000 2,000 16. Based on the above data, what is the amount of quick assets? a. $205,000 b. $203,000 c. $131,000 d. $66,000 17. Based on the above data, what is the amount of working capital? a. $238.000...
2015 2014 2015 Awets Current Assets Cash Accounts Receivable Credit Card Receivable Marketable Securities Notes Receivable...
2015 2014 2015 Awets Current Assets Cash Accounts Receivable Credit Card Receivable Marketable Securities Notes Receivable Inventory Prepaid Expenses Total Current Assets $25,000 $5,000 57.000 $20.000 $30,000 $32000 $40.000 $159.000 $23,000 $4.500 $6,000 $18,000 $25.000 $27.000 $36.000 $129.500 Revenues Sales Cash Sales AR Sales Credit Card Sales Total Sales Cost of Sales Gross Profit $45,000 $21,000 $76,000 $142,000 $38.340 $103,660 Direct Operating Expenses Payroll Expenses Other Expenses Total Departmental perses Fund Avusts $14.200 $12,780 526,900 Gross Operating Income 576.GRO tau...
Notes Payable--$105.000 Marketable securities--$36.000 Prepaid Expenses----$2.000 Sales---$500,000 Cost of Goods Sold---$300,000 Operating Expenses----$155,000 Accounts Payable---$40,000 Accounts Receivable---$65,000 Accrued Liabilities----$38,000 Cash----$30.000 Inventory----$72,000 Equipment----$150,000 Land/Building----$625,000 What is the amount of Quick Assets? O a. $205,000 O b. $203.000 O c. $131,000 O d. $ 66,000
Use the following information to answer questions 21 thru 25: Accounts Payable----$40,000 Notes Payable----$105,000 Accounts Receivable----$65,000 Marketable securities----$36.000 Accrued Liabilities----$38,000 Prepaid Expenses----$2.000 Cash----$30,000 Sales----$500.000 Inventory----$72,000 Cost of Goods Sold----$300,000 Equipment----$150.000 Operating Expenses----$155.000 Land/Building----5625,000 What is the amount of Quick Assets? O a. $205,000 O b. $203,000 O c. $131,000 O d. $ 66,000
16 - 17 and 18 please...
Accounts payable Accounts receivable Accrued liabilities Cash Intangible assets Inventory Long-term investments Long-term liabilities Marketable securities Notes payable (short-term) Property, plant, and equipment Prepaid expenses $ 40,000 65,000 7,000 30,000 40,000 72,000 110,000 75,000 36,000 30,000 625,000 2,000 16. Based on the above data, what is the amount of quick assets? a. $205,000 b. $203,000 c. $131,000 d. $66,000 17. Based on the above data, what is the amount of working capital? a. $238.000...
2015 2014 2015 Awets Current Assets Cash Accounts Receivable Credit Card Receivable Marketable Securities Notes Receivable Inventory Prepaid Expenses Total Current Assets $25,000 $5,000 57.000 $20.000 $30,000 $32000 $40.000 $159.000 $23,000 $4.500 $6,000 $18,000 $25.000 $27.000 $36.000 $129.500 Revenues Sales Cash Sales AR Sales Credit Card Sales Total Sales Cost of Sales Gross Profit $45,000 $21,000 $76,000 $142,000 $38.340 $103,660 Direct Operating Expenses Payroll Expenses Other Expenses Total Departmental perses Fund Avusts $14.200 $12,780 526,900 Gross Operating Income 576.GRO tau...
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