As loan analyst for Blue Spruce Bank, you have been presented the following information. Assets Cash Receivables Inventories Total current assets Other assets Total assets Liabilities and Equity Current liabilities Long-term liabilities Capital stock and retained earnings Total liabilities and equity Annual sales Rate of gross profit on sales Sunland Co. $220,000 115,000 515,500 850,500 221,000 $1,071,500 $243,000 208,000 620,500 $1,071,500 $1,340,000 35% Carla Vista Co. $143,000 251,000 372,000 766,000 420,000 $1,186,000 $383,000 299,000 504,000 $1,186,000 $2,300,000 25%
As loan analyst for Blue Spruce Bank, you have been presented the following information. Assets Cash Receivables Inventories Total current assets Other assets Total assets Liabilities and Equity Current liabilities Long-term liabilities Capital stock and retained earnings Total liabilities and equity Annual sales Rate of gross profit on sales Sunland Co. $220,000 115,000 515,500 850,500 221,000 $1,071,500 $243,000 208,000 620,500 $1,071,500 $1,340,000 35% Carla Vista Co. $143,000 251,000 372,000 766,000 420,000 $1,186,000 $383,000 299,000 504,000 $1,186,000 $2,300,000 25%
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 16P: Ratios Analyses: McCormick Refer to the information for McCormick above. Additional information for...
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![As loan analyst for Blue Spruce Bank, you have been presented the following information.
Assets
Cash
Receivables
Inventories
Total current assets
Other assets
Total assets
Liabilities and Equity
Current liabilities
Long-term liabilities
Capital stock and retained earnings
Total liabilities and equity
Annual sales
Rate of gross profit on sales
Sunland Co.
$220,000
115,000
515,500
850,500
221,000
$1,071,500
$243,000
208,000
620,500
$1,071,500
$1,340,000
35%
Carla Vista Co.
$143,000
251,000
372,000
766,000
420,000
$1,186,000
$383,000
299,000
504,000
$1,186,000
$2,300,000
25%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3bcae66a-f265-4775-a305-e5fe053be2d4%2F55075b34-5ee3-4578-9a66-893ab8f447e3%2Fesw041b_processed.png&w=3840&q=75)
Transcribed Image Text:As loan analyst for Blue Spruce Bank, you have been presented the following information.
Assets
Cash
Receivables
Inventories
Total current assets
Other assets
Total assets
Liabilities and Equity
Current liabilities
Long-term liabilities
Capital stock and retained earnings
Total liabilities and equity
Annual sales
Rate of gross profit on sales
Sunland Co.
$220,000
115,000
515,500
850,500
221,000
$1,071,500
$243,000
208,000
620,500
$1,071,500
$1,340,000
35%
Carla Vista Co.
$143,000
251,000
372,000
766,000
420,000
$1,186,000
$383,000
299,000
504,000
$1,186,000
$2,300,000
25%
![Each of these companies has requested a loan of $196,000 for 6 months with no collateral offered. Inasmuch as your bank has reached its quota for loans of this type, only one of these requests is to be granted.
Compute the various ratios for each company. (Round answer to 2 decimal places, e.g. 2.25.)
Current ratio
Acid-test ratio
Accounts receivable turnover
Inventory turnover
Cash to current liabilities
Sunland Co.
:1
:1
times
times
:1
Carla Vista Co.
:1
:1
times
times
:1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3bcae66a-f265-4775-a305-e5fe053be2d4%2F55075b34-5ee3-4578-9a66-893ab8f447e3%2F6i8tbt_processed.png&w=3840&q=75)
Transcribed Image Text:Each of these companies has requested a loan of $196,000 for 6 months with no collateral offered. Inasmuch as your bank has reached its quota for loans of this type, only one of these requests is to be granted.
Compute the various ratios for each company. (Round answer to 2 decimal places, e.g. 2.25.)
Current ratio
Acid-test ratio
Accounts receivable turnover
Inventory turnover
Cash to current liabilities
Sunland Co.
:1
:1
times
times
:1
Carla Vista Co.
:1
:1
times
times
:1
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