Homework Answers
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
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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...
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...
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...
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...
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...
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....
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...
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...
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...
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 receivabl...
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...
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 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...
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