2. Liquidity ratios Name of Ratio Formula Sample Computation Working Capital Current ratio Acid Test ratio
2. Liquidity ratios Name of Ratio Formula Sample Computation Working Capital Current ratio Acid Test ratio
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 5SEQ
Related questions
Question
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Compute the Financial ratios using the table given below
![C&F Store
Statement of Financial Position
As of December 31, 2014
2013
2014
87,400
Cash
124960
110,000
69,920
Accounts Receivable 249920/2
90,000
129,000
218,500
Inventory 347500/2 - 173750
4,370
Prepaid Rent341,000
12,000
493,810
Delivery Van
550,000
Total Assets
891,000
874,000
Accounts Payable
75,000
67,298
400,000
393,300
Loans Payable
413,402
Anistle Cruz, Capital
416,000
874,000
Total Liabilities and Capital
891,000
C&F Store
Statement of Comprehensive Income
For the period ending December 31, 2014
2014
2013
810,000
686,000
Sales
348,300
301,750
Cost of Goods Sold
461,700
384,250
Gross Profit
234,900
205,800
Operating Expenses
40,500
17,150
Interest Expense
186,300
161,300
Net Income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa5e5ebde-b1bf-4c5d-a6bb-06d1808750e9%2Fc00271d5-e6ac-4f5c-a784-6834d537e248%2F98xupwl_processed.png&w=3840&q=75)
Transcribed Image Text:C&F Store
Statement of Financial Position
As of December 31, 2014
2013
2014
87,400
Cash
124960
110,000
69,920
Accounts Receivable 249920/2
90,000
129,000
218,500
Inventory 347500/2 - 173750
4,370
Prepaid Rent341,000
12,000
493,810
Delivery Van
550,000
Total Assets
891,000
874,000
Accounts Payable
75,000
67,298
400,000
393,300
Loans Payable
413,402
Anistle Cruz, Capital
416,000
874,000
Total Liabilities and Capital
891,000
C&F Store
Statement of Comprehensive Income
For the period ending December 31, 2014
2014
2013
810,000
686,000
Sales
348,300
301,750
Cost of Goods Sold
461,700
384,250
Gross Profit
234,900
205,800
Operating Expenses
40,500
17,150
Interest Expense
186,300
161,300
Net Income
![2. Liquidity ratios
Name of Ratio
Formula
Sample Computation
Working Capital
Current ratio
Acid Test ratio
Accounts Receivable Turnover ratio
Average Collection Period
Inventory Turnover ratio
Average days in inventory
Number of days in operating cycle](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa5e5ebde-b1bf-4c5d-a6bb-06d1808750e9%2Fc00271d5-e6ac-4f5c-a784-6834d537e248%2Fgjwrn_processed.png&w=3840&q=75)
Transcribed Image Text:2. Liquidity ratios
Name of Ratio
Formula
Sample Computation
Working Capital
Current ratio
Acid Test ratio
Accounts Receivable Turnover ratio
Average Collection Period
Inventory Turnover ratio
Average days in inventory
Number of days in operating cycle
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