10 Assume current assets totaled $61,000 and the current ratio was 1.2 before the following independent transactions: 1. Purchased merchandise for $6,000 on short-term credit. 2. Purchased a delivery truck for $22,000. Paid $3,000 cash and signed a two-year interest-bearing note for the balance. Required: Compute the current ratio after each independent transaction. Note: Round your answers to 2 decimal places. Transaction (1) (2) Current Ratio

10 Assume current assets totaled $61,000 and the current ratio was 1.2 before the following independent transactions: 1. Purchased merchandise for $6,000 on short-term credit. 2. Purchased a delivery truck for $22,000. Paid $3,000 cash and signed a two-year interest-bearing note for the balance. Required: Compute the current ratio after each independent transaction. Note: Round your answers to 2 decimal places. Transaction (1) (2) Current Ratio

Name: 00Assume current assets totaled $61,000 and the current ratio was 1.2
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Description: 00Assume current assets totaled $61,000 and the current ratio was 1.2 before the following independent transactions:1. Purchased merchandise for $6,000 on short-term credit.2. Purchased a delivery truck for $22,000. Paid $3,000 cash and signed a two

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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Concept explainers

Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.

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00
Assume current assets totaled $61,000 and the current ratio was 1.2 before the following independent transactions:
1. Purchased merchandise for $6,000 on short-term credit.
2. Purchased a delivery truck for $22,000. Paid $3,000 cash and signed a two-year interest-bearing note for the balance.
Required:
Compute the current ratio after each independent transaction.
Note: Round your answers to 2 decimal places.
Transaction
(2)
Current Ratio

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Financial statements for Rundle Company follow. Assets Current assets. Cash Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments Plant (net) Land Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Notes payable Accounts payable Salaries payable Total current liabilities Noncurrent liabilities Bonds payable Other RUNDLE COMPANY Balance Sheets As of December 31 Total noncurrent liabilities Total liabilities Stockholders' equity Preferred stock, (par value $10, 4% cumulative, non-participating; 7,000 shares authorized and issued) Common stock (no par; 50,000 shares authorized; 10,000 shares issued) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Year 4 $ 22,000 21,200 53,000 138,000 27,000 261,200 27,000 270,000 30,000 $588, 200 $ 31,800 133,800 21,000 186,600 100,000 27,000 127,000 313,600 70,000 70,000 134,600 274,600 $588,200 Year 3 $ 18,000 7,200 45,000 146,000…
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Required: Complete the following table by computing the missing amounts for the following independent cases. (Do not round intermediate calculations. Round "Annual Interest Rate" to 1 decimal place.) a. b. C. Principal Amount on Notes Receivable $ $ 50,000 40,000 Annual Interest Rate 12.0% % 9.0 % Time Period 6 months 9 months 12 months Interest Earned $ $ 3,600 2,700
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Construct the current assets section of the balance sheet from the following data. (Use cash as a plug figure after computing the other values.) (Use a 360-day year. Do not round intermediate calculations.) Yearly sales (credit) $ 570,000 Inventory turnover 10 times Current liabilities $ 97,000 Current ratio 2 Average collection period 36 days Current Assets:________ Cash:_________ Accounts Receivable_________ Inventory:__________ Total Current assets:_________-
Based on this financial data, calculate the Savings Ratio. $7470 Net Worth Liquid Assets $ 4610 Monthly Credit Payments $720 Monthly Savings $ 640 Gross Income Make sure to include zeros and round your answer to 2 decimal places. i.e. 3.55, 1.89, 1.02, 0.09, etc. Do not include a comma or"$" sign in your response. Liabilities Current Liabilities Take-home Pay $ 77300 $2000 $ 3150 $ 4890
Tucker Technology has current asset of $350,000 and current ratio of 2.0. Compute Tucker's current ratio after the following 4 transactions are all finished. Borrow $20,000 in a short-term note. Purchase $75,000 inventory on credit. Collect $30,000 of accounts receivable. Pay $20,000 of account payable.
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Given the following information, complete the balance sheet shown next Collection period Days' sales in cash Current ratio Assets Current assets: Cash Inventory turnover Liabilities to assets Payables period (All sales are on credit. All calculations assume a 365-day year. The payat Note: Round your answers to the nearest whole dollar. Accounts receivable Inventory Total current assets Net fixed assets Total assets Liabilities and shareholders equity Current liabilities: Accounts payable Short-term debt Total current liabilities 70 days 32 days 2.2 5 70% 36 days Long-term debt Shareholders equity Total liabilities and equity times $ 1,300,000 S S 1,900,000 8,000,000 2.400.000 8.000.000