(a) Calculate the current ratio for each of the following competing companies.Note: Round your answers to 2 decimal places.CurrentCurrentCurrentAssetsLiabilitiesRatioEdison$77,000 $31,048MAXT102,41074,809Chatter43,42847,976TRU83,39180,636Gleeson59,21398,662(b) Which competitor is in the best position to pay its short-term obligations?Edison○ MAXT○ Chatter○ TRU● Gleeson

Step 1: Calculation of Current RatiosStep 2: Best Competitor to pay short-term obligationsThe…

Answered: (a) Calculate the current ratio for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Compute the missing amounts on the company’s financial statements. (Hint: What’s the difference between the acid-test ratio and the current ratio?)16. Retained Earnings17. Total liabilities and stockholders' equity18. Total Assets19. Plant and equipment, net
What is the current assets for each company? What are the short term investments for each company? What is the average account receivable for each company? What is the average inventory for each company?
Ace Industries has current assets equal to $10 million. The company's current ratio is 2.0, and its quick ratio is 1.5. What is the firm's level of current liabilities? What is the firm's level of inventories? Do not round intermediate calculations. Round your answers to the nearest dollar. Current liabilities: $ Inventories: $
The following information was drawn from the balance sheets of the Kansas and Montana companies. Kansas Montana $42,000 21,000 $55,000 11,000 Current assets Current liabilities Required a. Compute the current ratio for each company. b. Which company has the greater likelihood of being able to pay its bills? c. Assume that both companies have the same amount of total assets. Speculate as to which company would produce the higher return-on-assets ratio. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the current ratio for each company. (Round your answers to 2 decimal places.) Current Ratio Kansas to 1 Montana to 1
Please interpret the numbers and compare the number, no required to explain the theory. Also answer if the business is a going concern? CKM RATIOS: 2016 2017 2018 2019 2020 2021 Current ratio 0.66 0.58 0.96 0.92 1.06 0.83 Quick ratio 0.43 0.37 0.58 0.53 0.49 0.57 Operating cash flow ratio 0.10 0.01 0.01 0.00 0.02 0.07 PWC RATIOS: 2016 $000 2017 $000 2018 $000 2019 $000 2020 $000 2021 $000 Current ratio 2.37 2.23 2.07 1.89 2.74 2.16 Quick ratio 0.93 0.95 0.81 0.80 1.36 1.01 Operating cash flow ratio 1.02 0.72 0.96 0.47 0.32 0.52
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SDJ, Incorporated, has net working capital of $3,490, current liabilities of $4,950, and inventory of $4,990. a. What is the current ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the quick ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Compute Liquidity and Solvency Ratios for Competing Firms Halliburton and Schlumberger compete in the oil field services sector. Refer to the following 2018 financial data for the two companies to answer the requirements. $ millions Cash and equivalents Short-term investments Accounts receivable HAL SLB $2,008 $1,433 1,344 5,182 7,802 Current assets Current liabilities Total liabilities Total equity 11,151 15,731 4,754 13,351 16,438 33,921 9,449 36,220 Earnings before interest and tax (EBIT) 2,442 3,020 Interest expense, gross 554 537 a. Compute the following measures for both companies. Note: Round your final answers to two decimal places (for example, enter 6.78 for 6.77555). HAL SLB 1. Current ratio 2.32 X 1.17 x 2. Quick ratio 1.5 x 0.68 * 3. Times interest earned 4.45 x 5.67 x 4. Liabilities-to-equity 1.7 x 0.92 x b. Which company appears more liquid? HAL c. Which company appears more solvent? SLB =>
Compute Liquidity and Solvency Ratios for Competing Firms Halliburton and Schlumberger compete in the oil field services sector. Refer to the following 2018 financial data for the two companies to answer the requirements. $ millions Cash and equivalents Short-term investments Accounts receivable Current assets Current liabilities Total liabilities Total equity Earnings before interest and tax (EBIT) Interest expense, gross HAL SLB $2,008 $1,433 1,344 5,391 8,117 11,151 15,731 4,946 13.891 16,438 33,921 1. Current ratio 2. Quick ratio 3. Times interest earned 4. Liabilities-to-equity 9,830 37,684 2,541 3,142 554 537 a. Compute the following measures for both companies. Note: Round your final answers to two decimal places (for example, enter 6.78 for 6.77555). HAL SLB b. Which company appears more liquid? c. Which company appears more solvent? ◆
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(a) Calculate the current ratio for each of the following competing companies. (Round your answers to 2 decimal places.) Current Assets Current Current Liabilities Ratio Edison 24 78,000 $ 27,178 MAXT 103,740 43,992 84,474 65,483 Chatter 41,995 TRU 70,584 Gleeson 59,982 86,362 (b) Which competitor is in the best position to pay its short-term obligations? O Edison O MAXT O Chatter O TRU O Gleeson
The following information relates to Roland Limited as at 30 June 2023: 0.14:1 The quick ratio is: Select the one correct answer: 9:1 2:1 Total current assets Total assets Current liabilities Total liabilities O 14:1 Inventories Prepayments $'000s 2,200 10,000 1,100 2,400 2,000 45

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