1. What was the company's working capital on June 30? 2. What was the company's acid-test ratio on June 30? (Round your answer to 2 decimal places) 3. The company paid an account payable of $48,000 immediately after June 30. a. What effect did this transaction have on working capital? b. What effect did this transaction have on the current ratio? (Round your intermediate calculations to 1 decimal place.)

1. What was the company's working capital on June 30? 2. What was the company's acid-test ratio on June 30? (Round your answer to 2 decimal places) 3. The company paid an account payable of $48,000 immediately after June 30. a. What effect did this transaction have on working capital? b. What effect did this transaction have on the current ratio? (Round your intermediate calculations to 1 decimal place.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Compute the missing amounts on the company’s financial statements. (Hint: What’s the difference between the acid-test ratio and the current ratio?)13. Total liabilities14. Common stock capital15. Total stockholders' equity
Answer with formulas
The following annual account balances are from Armour Sports at December 31. a. What is the change in the number of days’ sales uncollected between Year 1 and Year 2? (Round the number of days to one decimal.) b. From the analysis in part a, is the company’s collection of receivables improving?
Please help me
Graff Company had the following data for the month of November: Graff, Capital, November 1= $10,000 Net Income = $2,000 Graff, withdrawals = $1,200 What is the amount of Graff, Capital account as of November 30th?
A firm began the financial year with rent payable owing of £700. During the year, the business paid £3,100 in rent and at the end of the year the business had paid £800 rent in advance. What was the rent payable expense for the year to be shown in the income statement?
What is total net sales for this company? What is total gross profit for this company? What is total operating expenses for this company? What is net income for this company? What is the company's gross profit ratio, also called gross profit margin ratio? Just enter the digits without decimals or punctuation.
Po16.
L’Oréal reports the following income statement accounts for the year ended December 31 (in millions). Prepare the income statement for this company for the year ended December 31. Net profit € 3,108.7 Income tax expense €1,214.6 Finance costs . 58.4 Profit before tax expense 4,323.3 Net sales 25,837.1 Research and development expense . 849.8 Gross profit . . . . . . . . . . . . . . . 18,495.4 Selling, general and administrative expense . 5,607.0 Other expense . 543.8 Advertising and promotion expense . 7,498.7 Cost of sales . 7,341.7 Finance income 385.6
Please answer correctly. Thank you.
Oriole Enterprises had a capital balance of $190000 at the beginning of the period. At the end of the accounting period, the capital balance was $192500. 1. Assuming no additional investment or withdrawals during the period, what is the net income for the period? 2. Assuming an additional investment of $14300 but no withdrawals during the period, what is the net income for the period?
Problem 5 Evaluate the following items, and determine the correct amount to report on the income statement for each, using the accrual basis of accounting for the referenced period of time. A Company had beginning accounts receivable of $16,000. The company reported cash basis revenues of $200,000. The ending accounts receivable amounted to $36,000. B Company purchased $50,000 of supplies. Supplies on hand decreased by $10,000 during the period. C Company started the year with no prepaid rent, and ended the year with $2,000 in prepaid rent. Rent expense on a cash basis was $26,000. Revenues Supplies Rent Equipment A the beginning of the year, D Company purchased and expensed an item of equipment for $40,000. The equipment has a 4-year life, and will be worthless after four years. There were no wages payable at the beginning of the year. E Company paid $290,000 in wages during the year, and owed an additional $24,000 at year's end. Wages Worksheet 5 Revenues Supplies Rent Equipment…