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a. Receivables tumover ratio b. Inventory turnover ratio c. Current ratio times times

a. Receivables tumover ratio b. Inventory turnover ratio c. Current ratio times times

FINANCIAL ACCOUNTING
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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Subject: accounting 

Assets Current assets: Cash Accounts receivable. Inventory Investments Long-term assets: Land DUAL MONITORS CORPORATION Balance Sheets December 31, 2024 and 2023 Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity. Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders equity Additional information for 2024: 1. Net income is $92,700. 2. Sales on account are $1,416,800. 3. Cost of goods sold is $1,098,500. 2024 $151,300 72,000 92,000 3,700 450,000 760,000 450,000 640,000 (398,000) (238,000) $1,131,000 $1,136,700 $96,000 6,000 8,000 2023 $117,000 89,000 77,000 1,700 $82,000 11,700 4,700 220,000 670,000 148,300 $1,131,000 $1,136,700. 110,000 670,000 241,000 Required: 1. Calculate the following risk ratios for 2024: 2. When we compare two companies, can one have a higher current ratio while the other has a higher acid-test ratio?
Transcribed Image Text:Assets Current assets: Cash Accounts receivable. Inventory Investments Long-term assets: Land DUAL MONITORS CORPORATION Balance Sheets December 31, 2024 and 2023 Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity. Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders equity Additional information for 2024: 1. Net income is $92,700. 2. Sales on account are $1,416,800. 3. Cost of goods sold is $1,098,500. 2024 $151,300 72,000 92,000 3,700 450,000 760,000 450,000 640,000 (398,000) (238,000) $1,131,000 $1,136,700 $96,000 6,000 8,000 2023 $117,000 89,000 77,000 1,700 $82,000 11,700 4,700 220,000 670,000 148,300 $1,131,000 $1,136,700. 110,000 670,000 241,000 Required: 1. Calculate the following risk ratios for 2024: 2. When we compare two companies, can one have a higher current ratio while the other has a higher acid-test ratio?
Required: 1. Calculate the following risk ratios for 2024: 2. When we compare two companies, can one have a higher current ratio while the other has a higher acid-test ratio? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the following risk ratios for 2024: (Round your answers to 1 decimal place.) Risk Ratios a. Receivables turnover ratio b. Inventory turnover ratio c. Current ratio d. Acid-test ratio e. Debt to equity ratio times times 111.0% Required 1 Required 2 >
Transcribed Image Text:Required: 1. Calculate the following risk ratios for 2024: 2. When we compare two companies, can one have a higher current ratio while the other has a higher acid-test ratio? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the following risk ratios for 2024: (Round your answers to 1 decimal place.) Risk Ratios a. Receivables turnover ratio b. Inventory turnover ratio c. Current ratio d. Acid-test ratio e. Debt to equity ratio times times 111.0% Required 1 Required 2 >
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