Solution:
Current Ratio | ||||||
Particulars | Choose Numerator | / | Choose denominator | = | Current Ratio | |
Formula | Current Assets | / | Current Liabilities | = | Current Ratio | |
Case X | $6,000.00 | / | $2,400.00 | = | 2.50 | to 1 |
Case Y | $3,820.00 | / | $1,410.00 | = | 2.71 | to 1 |
Case Z | $6,800.00 | / | $4,000.00 | = | 1.70 | to 1 |
Acid-Test Ratio | ||||||
Particulars | Choose Numerator | / | Choose denominator | = | Acid Test Ratio | |
Formula | Quick Assets | / | Current Liabilities | = | Acid Test Ratio | |
Case X | $3,600.00 | / | $2,400.00 | = | 1.50 | to 1 |
Case Y | $920.00 | / | $1,410.00 | = | 0.65 | to 1 |
Case Z | $2,400.00 | / | $4,000.00 | = | 0.60 | to 1 |
Exercise 4-14 Computing and analyzing acid-test and current ratios LO A1 Case X $ 2,850 Case Y $ 320 350 2,400 Cash...
Exercise 4-14 Computing and analyzing acid-test and current ratios LO A1 Compute the current ratio and acid-test ratio for each of the following separate cases. Torino Camaro GTO $2,850 $1,500 Cash 320 Short-term investments 0 0 400 Current receivables 350 600 500 Inventory Prepaid expenses 2,400 2,200 3,500 400 700 900 $6,000 $3,820 $6,800 Total current assets $2,400 $1,410 $4,000 Current 1iabilities Current Ratio Choose Numerator: Choose Denominator: Current Ratio Current ratio Camaro / to 1 GTO to 1 Torino...
compute the current ratio and acid test ratio for each of the following seperate cases Exercise 4-14 Computing and analyzing acid-test and current ratios LO A1 points Camaro GTO Torino $2,800 $ 310 $1,500 00600 340 590 450 2,375 2,180 3,450 400 700 900 $5,915 $3,780 $6,900 Cash Short-term investments Current receivables Inventory Prepaid expenses Total current assets Current liabilities Skipped $2.380 $1.400 $3.950 eBook Hint Compute the current ratio and acid-test ratio for each of the following separate cases....
Compute the current ratio and acid-test ratio for each of the following separate cases Torino $ 2,450240 $1,300 400 550 2,200 2,040 3,100 900 6,250 Camaro GTO Cash Short-term investments Current receivables Inventory Prepaid expenses Total current assets 520 700 $ 5,220 $ 3,50 270 300 Current liabilities $ 2,240 1,330 3,600 urrent Ratio Choose Numerator: Choose Denominator: Current Ratio Current ratio Camaro GTO Torino to 1 cid-Test Ratio Choose Numerator: Choose Denominator: Acid-Test Ratio Acid-test ratio Camaro GTO Torino...
Exercise 4-13 Computing the current ratio LO A1 Use the information in the following adjusted trial balance for the Wilson Trucking Company. Credit Debit $ 6,400 16,500 2,000 154,000 $ 31,724 75,000 Account Title Cash Accounts receivable Office supplies Trucks Accumulated depreciation-Trucks Land Accounts payable Interest payable Long-term notes payable K. Wilson, Capital K. Wilson, Withdrawals Trucking fees earned Depreciation expense-Trucks Salaries expense office supplies expense Repairs expense-Trucks Totals 10,400 3,000 52,000 149,634 19,000 119,500 20, 462 56,046 6,573 10,277...
Required information Problem 13-5A Comparative ratio analysis LO A1, P3 [The following information applies to the questions displayed below.] Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Barco Kyan Company Company Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets Sales $810,000 $891,200 Cash $ 18,500 $ 34,000 Cost of goods sold 587,100 638,500 Accounts receivable, net 38, 400 58, 400 Interest expense...
Problem 4-5A Preparing adjusting entries and income statements; computing gross margin, acid-test, and current ratios LO A1, A2, P3, P4 [The following information applies to the questions displayed below.] The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. NELSON COMPANY Unadjusted Trial Balance January 31, 2017 Debit Credit Cash $ 1,000 Merchandise inventory 12,500 Store supplies 5,800 Prepaid insurance 2,400 Store equipment 42,900 Accumulated depreciation—Store equipment $ 15,250 Accounts payable 10,000 Common stock 5,000...
Saved Exercise 13-7 Analyzing liquidity LO P3 Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 29,947 87,692 112,506 9,843 283,295 $ 523,283 $ 35,728 $ 37,953 64,418 48,148 81,786 52,324 9,663...
Problem 13-4A Calculating financial statement ratios LO P3 Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selo at December 31 of the prior year were inventory, $50,900; total assets, $209,400; common stock, $83,00 $54,315.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 452,600 Cost of goods sold 297,550 Gross profit 155,050 Operating expenses 99,500 Interest expense 4,500 Income before taxes 51,050 Income tax expense 20,565 Net income $ 30,485 $...
Required information Problem 4-5A Preparing adjusting entries and income statements; computing gross margin, acid-test, and current ratios LO A1, A2, P3, P4 [The following information applies to the questions displayed below.] The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. NELSON COMPANY Unadjusted Trial Balance January 31, 2017 Debit Credit Cash $ 1,000 Merchandise inventory 12,500 Store supplies 5,800 Prepaid insurance 2,400 Store equipment 42,900 Accumulated depreciation—Store equipment $ 15,250 Accounts payable 10,000 Common...
Problem 13-4A Calculating financial statement ratios LO P3 Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $50,900; total assets, $169,400; common stock, $84,000; and retained earnings, $31,305.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 455,600 Cost of goods sold 297,350 Gross profit 158,250 Operating expenses 98,800 Interest expense 4,700 Income before taxes 54,750 Income tax expense...