None Current Position AnalysisThe following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years:Current assets:Current YearPrevious YearCash$324,500$254,400Marketable securities375,800286,200Accounts and notes receivable (net)153,70095,400Inventories885,700646,600Prepaid expenses456,300413,400Total current assets$2,196,000$1,696,000Current liabilities:Accounts and notes payable(short-term)Accrued liabilitiesTotal current liabilities$353,800$371,000256,200$610,000159,000$530,000a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.Current YearPrevious Year1. Working capital2. Current ratio3. Quick ratio

Current ratio is the ratio between current assets to current liabilities. It is calculated by…

Answered: a. Determine for each year (1) the…

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a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. R

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 13E: Ratio of liabilities to stockholders equity and times interest earned The following data were taken...

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Ratio of liabilities to stockholders equity and times interest earned The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: The income before income tax expense was 480,000 and 420,000 for the current and previous years, respectively. A. Determine the ratio of liabilities to stockholders equity at the end of each year. Round to one decimal place. B. Determine the times interest earned ratio for both years. Round to one decimal place. C. What conclusions can be drawn from these data as to the companys ability to meet its currently maturing debts?
Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was 82.60 on December 31, 20Y2. Instructions Determine the following measures for 20Y2, rounding to one decimal place, including percentages, except for per-share amounts: 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days sales in receivables 6. Inventory turnover 7. Number of days sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders equity 10. Times interest earned 11. Asset turnover 12. Return on total assets 13. Return on stockholders equity 14. Return on common stockholders equity 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yield
Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was 82.60 on December 31, 20Y2. Instructions Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts): 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days sales in receivables 6. Inventory turnover 7. Number of days sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders equity 10. Times interest earned 11. Asset turnover 12. Return on total assets 13. Return on stockholders equity 14. Return on common stockholders equity 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yield
Current Position Analysis The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash Marketable securities Accounts and notes receivable (net) Inventories Prepaid expenses Total current assets Current liabilities: Accounts and notes payable (short-term) Accrued liabilities Total current liabilities $387,600 448,800 183,600 1,032,200 531,800 $2,584,000 1. Working capital 2. Current ratio 3. Quick ratio b. The liquidity of Nilo has improved increased $394,400 285,600 $680,000 $306,800 345,200 115,000 719,800 460,200 $1,947,000 $413,000 177,000 $590,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current Year Previous Year ✔ from the preceding year to the current year. The working capital, current ratio, and quick ratio have all ✔Most of these channes are the result of an increase ✔in nurrent accets…
Current Position Analysis The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash Marketable securities Accounts and notes receivable (net) Inventories Prepaid expenses Total current assets Current liabilities: Accounts and notes payable (short-term) Accrued liabilities Total current liabilities 1. Working capital 2. Current ratio $410,400 475,200 194,400 712,800 367,200 $2,160,000 3. Quick ratio b. The liquidity of Albertini has these changes are the result of an $313,200 226,800 $540,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current Year Previous Year $ $338,400 380,700 126,900 516,100 329,900 $1,692,000 $329,000 141,000 $470,000 from the preceding year to the current year. The working capital, current ratio, and quick ratio have all in current assets relative to current liabilities.…
Current Position Analysis The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years: Previous Year Current assets: Cash Marketable securities Accounts and notes receivable (net) Inventories Prepaid expenses. Total current assets. Current liabilities: Accounts and notes payable (short-term) Accrued liabilities Total current liabilities 1. Working capital 2. Current ratio: Current Year 3. Quick ratio b. The liquidity of Albertini has $356,400 412,700 168,900 1,547,700 797,300 $3,283,000 $388,600 281,400 $670,000 $278,400 313,200 104,400 1,167,500 746,500 $2,610,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current Year Previous Year $406,000 174,000 $580,000 from the preceding year to the current year. The working capital, current ratio, and quick ratio have all in current assets relative to current liabilities. Most of these changes are the…
Current Position Analysis The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current assets: Cash Marketable securities Accounts and notes receivable (net) Inventories Prepaid expenses Total current assets Current liabilities: Accounts and notes payable (short-term) Accrued liabilities Total current liabilities 1. Working capital 2. Current ratio Current Year Previous Year 3. Quick ratio $391,000 515,000 634,000 368,000 182,000 $2,090,000 $725,000 275,000 $1,000,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current Year $300,000 354,000 426,000 222,000 138,000 $1,440,000 $600,000 300,000 $900,000 LA Previous Year
Vertical Analysis of Balance Sheet Balance sheet data for Hanes Company on December 31, the end of the fiscal year, are shown below. Current assets Property, plant, and equipment Intangible assets Current liabilities Long-term liabilities Common stock Retained earnings Current assets 20Y2 Assets 266,240 457,600 108,160 183,040 324,480 91,520 232,960 20Y1 $266,240 162,240 % 418,080 43,680 106,080 Prepare a comparative balance sheet for 20Y2 and 20Y1, stating each asset as a percent of total assets and each liability and stockholders' equity of the total liabilities and stockholders' equity. If required, round percentages to one decimal place. 249,600 87,360 180,960 Hanes Company Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 Amount 20Y2 Percent 20Y1 Amount 20Y1 Percent $162,240 %
Current Position Analysis The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash Marketable securities Accounts and notes receivable (net) Inventories Prepaid expenses Total current assets Current liabilities: Accounts and notes payable (short-term) Accrued liabilities Total current liabilities a. Determine for each year (1) the working Current Year 1. Working capital 2. Current ratio 3. Quick ratio b. The liquidity of Nilo has current assets relative to current liabilities. $690,500 799,500 327,000 1,042,800 537,200. $3,397,000 $458,200 $579,600 652,100 217,300 673,400 430,600 $2,553,000 $483,000 331,800 207,000 $790,000 $690,000 capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Previous Year from the preceding year to the current year. The working capital, current ratio, and quick ratio have all . Most of these changes are the result of an in
Vertical Analysis of Balance Sheet Balance sheet data for Hanes Company on December 31, the end of the fiscal year, are shown below. 20Y2 20Y1 Current assets 346,560 203,000 Property, plant, and equipment 595,650 527,800 Intangible assets 140,790 81,200 Current liabilities 238,260 129,920 Long-term liabilities 433,200 341,040 Common stock 119,130 113,680 Retained earnings 292,410 227,360 Prepare a comparative balance sheet for 20Y2 and 20Y1, stating each asset as a percent of total assets and each liability and stockholders' equity item as a percent of the total liabilities and stockholders' equity. If required, round percentages to one decimal place. Hanes Company Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 Amount 20Y2 Percent 20Y1 Amount 20Y1 Percent Assets Current assets $346,560 % $203,000 % Property, plant, and equipment 595,650 % 527,800 % Intangible assets 140,790 % 81,200 % Total…
Calculate the activity and liquidity ratios for P for the year ended 31 December 20X9. Revenue Gross profit Inventory Trade receivables Trade payables Cash Short-term investments Other current liabilities $m 1,867.5 489.3 147.9 393.4 275.1 53.8 6.2 284.3 Current ratio= Current assets Current liabilities Inventory days Inventory days = inventory+ cost of sales × 365 Receivable days Receivable days - receivables + credit sales x 365 Payable days Payable days = payables ÷ credit purchases x 365.
Pritchett Company reported the following year-end data: Cash Short-term investments Accounts receivable (current) Inventory Prepaid (current) assets Total current 1iabilities $ 20, 100 8, 500 13,400 24, 000 6,800 28, 000 Compute the (a) current ratio and ( acid-test ratio. Complete this question by entering your answers in the tabs below. Currlat Ratio Acid Test Ratio Compute the current ratio. Current Ratio Current Ratio Numerator: Denominator: Current assets Current liabilities Current ratio 72.800 %24 28,000 2.6 to 1 %3 Acid Test Ratio>