A recent balance sheet of Sweet Tooth, Ic., included the following items, among others. (Dollar amounts are stated in thousands.) Cash Marketable securities (short-term) Accounts receivable Inventories Prepaid expenses Retained earnings Notes payable to banks (due within one year) Accounts payable Dividends payable Accrued liabilities (short-term) Income taxes payable $ 50,230 55,926 23,553 32,210 5,736 121,477 20,000 5,912 1,560 21,532 6,438 The company also reported total assets of $353,816 thousand, total liabilities of $81,630 thousand, and a return on total assets of 18.1 percent. Required: a. Compute Sweet Tooth's (1) quick assets, (2) current assets, and (3) current liabilities. b. Compute Sweet Tooth's (1) quick ratio, (2) current ratio, (3) working capital, and (4) debt ratio. (Round ratios to 1 decimal place.)
A recent balance sheet of Sweet Tooth, Ic., included the following items, among others. (Dollar amounts are stated in thousands.) Cash Marketable securities (short-term) Accounts receivable Inventories Prepaid expenses Retained earnings Notes payable to banks (due within one year) Accounts payable Dividends payable Accrued liabilities (short-term) Income taxes payable $ 50,230 55,926 23,553 32,210 5,736 121,477 20,000 5,912 1,560 21,532 6,438 The company also reported total assets of $353,816 thousand, total liabilities of $81,630 thousand, and a return on total assets of 18.1 percent. Required: a. Compute Sweet Tooth's (1) quick assets, (2) current assets, and (3) current liabilities. b. Compute Sweet Tooth's (1) quick ratio, (2) current ratio, (3) working capital, and (4) debt ratio. (Round ratios to 1 decimal place.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A recent balance sheet of Sweet Tooth, Ic., included the following items, among others. (Dollar amounts are stated in thousands.)
Cash
Marketable securities (short-term)
Accounts receivable
Inventories
Prepaid expenses
Retained earnings
Notes payable to banks (due within one year)
Accounts payable
Dividends payable
Accrued liabilities (short-term)
Income taxes payable
$ 50,230
55,926
23,553
32,210
5,736
121,477
20,000
5,912
1,560
21,532
6,438
The company also reported total assets of $353,816 thousand, total liabilities of $81,630 thousand, and a return on total assets of 18.1
percent.
Required:
a. Compute Sweet Tooth's (1) quick assets, (2) current assets, and (3) current liabilities.
b. Compute Sweet Tooth's (1) quick ratio, (2) current ratio, (3) working capital, and (4) debt ratio. (Round ratios to 1 decimal place.)
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