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ACCEL'S COMPANIES Income Statement Years Ended May 31, 2018 and 2017 2018 2017 Net Sales Revenue $ 40,600 $ 40,500 Cost of Goods Sold 28,400 30,600 Interest Expense 600 570 All Other Expenses 4,300 8,200 Net Income $ 7,300 $ 1,130 ACCEL'S COMPANIES Balance Sheet May :1, 2018 and 2017 Assets Liabilities 2018 2017 2018 2017 $ 2,400 900 Total Current Liabilities $ 28,000 $ 13,200 Cash Short-term Investments 28,000 9,000 Long-term Liabilities 13,900 10,300 Accounts Receivable 7,500 5,200 Total Liabilities 41,900 23,500 Merchandise Inventory 6,900 8,600 Stockholders' Equity 1,500 Common Stock 25,200 Retained Earnings 29,000 Total Equity S 54,200 Total Liabilities and Equity Other Current Assets 8,000 11,000 11,000 Total Current Assets 52,800 29,900 19,700 All Other Assets 30,000 40,900 30,700 Total Assets S 82,800 $ 82,800 5 54,200

ACCEL'S COMPANIES Income Statement Years Ended May 31, 2018 and 2017 2018 2017 Net Sales Revenue $ 40,600 $ 40,500 Cost of Goods Sold 28,400 30,600 Interest Expense 600 570 All Other Expenses 4,300 8,200 Net Income $ 7,300 $ 1,130 ACCEL'S COMPANIES Balance Sheet May :1, 2018 and 2017 Assets Liabilities 2018 2017 2018 2017 $ 2,400 900 Total Current Liabilities $ 28,000 $ 13,200 Cash Short-term Investments 28,000 9,000 Long-term Liabilities 13,900 10,300 Accounts Receivable 7,500 5,200 Total Liabilities 41,900 23,500 Merchandise Inventory 6,900 8,600 Stockholders' Equity 1,500 Common Stock 25,200 Retained Earnings 29,000 Total Equity S 54,200 Total Liabilities and Equity Other Current Assets 8,000 11,000 11,000 Total Current Assets 52,800 29,900 19,700 All Other Assets 30,000 40,900 30,700 Total Assets S 82,800 $ 82,800 5 54,200

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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Question

Use the following information for Short Exercises S15-6 through S15-10.

Accel’s Companies, a home improvement store chain, reported the following summarized figures:

Accel’s has 10,000 common shares outstanding during 2018.

Evaluating current ratio

Requirements

  1. Compute Accel’s Companies’ current ratio at May 31, 2018 and 2017.
  2. Did Accel’s Companies’ current ratio improve, deteriorate, or hold steady during 2018?
ACCEL'S COMPANIES Income Statement Years Ended May 31, 2018 and 2017 2018 2017 Net Sales Revenue $ 40,600 $ 40,500 Cost of Goods Sold 28,400 30,600 Interest Expense 600 570 All Other Expenses 4,300 8,200 Net Income $ 7,300 $ 1,130
Transcribed Image Text:ACCEL'S COMPANIES Income Statement Years Ended May 31, 2018 and 2017 2018 2017 Net Sales Revenue $ 40,600 $ 40,500 Cost of Goods Sold 28,400 30,600 Interest Expense 600 570 All Other Expenses 4,300 8,200 Net Income $ 7,300 $ 1,130
ACCEL'S COMPANIES Balance Sheet May :1, 2018 and 2017 Assets Liabilities 2018 2017 2018 2017 $ 2,400 900 Total Current Liabilities $ 28,000 $ 13,200 Cash Short-term Investments 28,000 9,000 Long-term Liabilities 13,900 10,300 Accounts Receivable 7,500 5,200 Total Liabilities 41,900 23,500 Merchandise Inventory 6,900 8,600 Stockholders' Equity 1,500 Common Stock 25,200 Retained Earnings 29,000 Total Equity S 54,200 Total Liabilities and Equity Other Current Assets 8,000 11,000 11,000 Total Current Assets 52,800 29,900 19,700 All Other Assets 30,000 40,900 30,700 Total Assets S 82,800 $ 82,800 5 54,200
Transcribed Image Text:ACCEL'S COMPANIES Balance Sheet May :1, 2018 and 2017 Assets Liabilities 2018 2017 2018 2017 $ 2,400 900 Total Current Liabilities $ 28,000 $ 13,200 Cash Short-term Investments 28,000 9,000 Long-term Liabilities 13,900 10,300 Accounts Receivable 7,500 5,200 Total Liabilities 41,900 23,500 Merchandise Inventory 6,900 8,600 Stockholders' Equity 1,500 Common Stock 25,200 Retained Earnings 29,000 Total Equity S 54,200 Total Liabilities and Equity Other Current Assets 8,000 11,000 11,000 Total Current Assets 52,800 29,900 19,700 All Other Assets 30,000 40,900 30,700 Total Assets S 82,800 $ 82,800 5 54,200
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