Answer 1.
Working Capital = Current Assets - Current Liabilities
Working Capital = $637,000 - $220,000
Working Capital = $417,000
Answer 2.
Current Ratio = Current Assets / Current Liabilities
Current Ratio = $637,000 / $220,000
Current Ratio = 2.90
Answer 3.
Acid-Test Ratio = (Current Assets - Merchandise Inventory -
Prepaid Expenses) / Current Liabilities
Acid-Test Ratio = ($637,000 - $370,000 - $8,000) / $220,000
Acid-Test Ratio = 1.18
Answer 4.
Debt-to-Equity Ratio = Total Liabilities / Total Stockholders’
Equity
Debt-to-Equity Ratio = $600,000 / $887,000
Debt-to-Equity Ratio = 0.68
Answer 5.
Times Interest Earned Ratio = Net Operating Income / Interest
Expense
Times Interest Earned Ratio = $1,298,000 / $38,000
Times Interest Earned Ratio = 34.16
Answer 6.
Average Accounts Receivable = ($140,000 + $240,000) / 2
Average Accounts Receivable = $190,000
Average Collection Period = 365 * Average Accounts Receivable /
Sales
Average Collection Period = 365 * $190,000 / $3,230,000
Average Collection Period = 21.5 days
Answer 7.
Average Inventory = ($350,000 + $370,000) / 2
Average Inventory = $360,000
Average Sale Period = 365 * Average Inventory / Cost of Goods
Sold
Average Sale Period = 365 * $360,000 / $1,332,000
Average Sale Period = 98.6 days
Answer 8.
Operating Cycle = Average Collection Period + Average Sale
Period
Operating Cycle = 21.5 + 98.6
Operating Cycle = 120.1 days
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance sheet December 31...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 20,000 Accounts receivable, net 240,000 Merchandise inventory 400,000 Prepaid expenses 8,000 Total current assets 668,000 Property and equipment, net 840,000 Total assets $ 1,508,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 300,000 Bonds payable, 12% 310,000 Total liabilities 610,000 Stockholders’ equity: Common stock, $10 par value $ 180,000 Retained earnings 718,000 Total stockholders’ equity 898,000 Total liabilities...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses $ 24,000 190,000 310,000 11,000 Total current assets Property and equipment, net 535,000 900,000 Total assets $1,435,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 11% $ 230,000 390,000 620,000 Total liabilities Stockholders' equity: Common stock, $5 par value Retained earnings $ 120,000 695,000 Total stockholders' equity 815,000 Total liabilities and...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 20,000 Accounts receivable, net 220,000 Merchandise inventory 320,000 Prepaid expenses 11,000 Total current assets 571,000 Property and equipment, net 880,000 Total assets $ 1,451,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 290,000 Bonds payable, 10% 400,000 Total liabilities 690,000 Stockholders’ equity: Common stock, $10 par value $ 150,000 Retained earnings 611,000 Total stockholders’ equity 761,000 Total liabilities...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 23,000 Accounts receivable, net 160,000 Merchandise inventory 340,000 Prepaid expenses 8,000 Total current assets 531,000 Property and equipment, net 880,000 Total assets $ 1,411,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 250,000 Bonds payable, 8% 320,000 Total liabilities 570,000 Stockholders’ equity: Common stock, $5 par value $ 170,000 Retained earnings 671,000 Total stockholders’ equity 841,000 Total liabilities...
The financial statements for Castile Products, Inc., are given below Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses 21,000 240,000 320,000 7,000 Total current assets 588,000 910,000 Property and equipment, net Total assets $1,498,000 Liabilities and Stockhoiders' Equity Liabilities: Current liabilities Bonds payable, 10% $ 240,000 390,000 . Total liabilities Stockholders' equity: Common stock, $5 par value Retained earnings 630,000 ole $ 180,000 688,000 Total stockholders' equity 868,000 Total liabilities...
Need some help. The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 12% Total liabilities Stockholders' equity: Common stock, $5 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 19,000 200,000 300,000 12,000 531,000 900,000 $1,431,000 $ 250,000 330,000...
The financial statements for Castile Products, Inc., are given below Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 21,000 260,000 360,000 8,000 Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets 649,000 820,000 Property and equipment, net Total assets $1,469,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $300,000 350,000 Bonds payable, 11% Total liabilities Stockholders' equity: Common stock, $5 par value Retained earnings 650,000 $110,000 709,000 Total stockholders' equity 819,000 Total liabilities and equity $1,469,000...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net $ Accounts 23,000 190,000 400,000 8,000 621,000 890,000 890,000 Total assets $1,511,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 12% $ 210,000 370,000 Total liabilities Stockholders' equity Common stock, $5 par value Retained earnings 580,000 $ 130,000 801,000 Total stockholders' equity Total liabilities...
The financial statements for Castile Products, Inc., are given below: Castile Products, Inc Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses $ 21,000 260,000 350,000 8,000 Total current assets Property and equipment, net 639,000 890,000 $1,529,000 Total assets Liabilities and Stockholders' Equity Liabilities $ 230,000 Current liabilities Bonds payable, 12% 320,000 550,000 $ 200,000 Total liabilities Stockholders' equity: Common stock, $5 par value Retained earnings 779,000 979,000 $1,529,000 Total stockholders' equity Total liabilities...
Castile Products, Inc Balance Sheet December 31 Assets Current assets: $ Cash 20,000 160,000 320,000 Accounts receivable, net Merchandise inventory Prepaid expenses 11,000 511,000 Total current assets 870,000 Property and equipment, net $1,381,000 Total assets Liabilities and Stockholders' Equity Liabilities: $ Current liabilities 270,000 320,000 590,000 Bonds payable, 9% Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings Total stockholders' equity $ 120,000 671,000 791,000 $1,381,000 Total liabilities and stockholders' equity Castile Products, Inc. Income Statement For the...