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As loan analyst for Sage Bank, you have been presented the following information. Assets Cash Receivables Inventories Total current assets. Other assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Capital stock and retained earnings Total liabilities and stockholders' equity Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Capital stock and retained earnings Total liabilities and stockholders' equity Annual sales Rate of gross profit on sales $319,000 419.000 652.000 $1,390,000 $948,000 30 % Toulouse Co. $119,000 226,000 562,000 907,000 483,000 $1,390,000 $319,000 419,000 652,000 $1.390.000 $350,000 483,000 969,000 $1,802,000 $1,453,000 40 % Lautrec Co. $332,000 298,000 536,000 1,166,000 636,000 $1,802,000 $350,000 483,000 969,000 $1.802.000 Each of these companies has requested a loan of $50,000 for 6 months with no collateral offered. Because your bank has reached its quota for loans of this type, only one of these requests is to be granted. (a1) Compute the various ratios for each company. Assume that the ending account balances are representative of the entire year. (Round answer to 2 decimal places, e.g. 2.25.)

As loan analyst for Sage Bank, you have been presented the following information. Assets Cash Receivables Inventories Total current assets. Other assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Capital stock and retained earnings Total liabilities and stockholders' equity Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Capital stock and retained earnings Total liabilities and stockholders' equity Annual sales Rate of gross profit on sales $319,000 419.000 652.000 $1,390,000 $948,000 30 % Toulouse Co. $119,000 226,000 562,000 907,000 483,000 $1,390,000 $319,000 419,000 652,000 $1.390.000 $350,000 483,000 969,000 $1,802,000 $1,453,000 40 % Lautrec Co. $332,000 298,000 536,000 1,166,000 636,000 $1,802,000 $350,000 483,000 969,000 $1.802.000 Each of these companies has requested a loan of $50,000 for 6 months with no collateral offered. Because your bank has reached its quota for loans of this type, only one of these requests is to be granted. (a1) Compute the various ratios for each company. Assume that the ending account balances are representative of the entire year. (Round answer to 2 decimal places, e.g. 2.25.)

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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As loan analyst for Sage Bank, you have been presented the following information. Assets Cash Receivables Inventories Total current assets. Other assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Capital stock and retained earnings Total liabilities and stockholders' equitv Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Capital stock and retained earnings Total liabilities and stockholders' equity Annual sales Rate of gross profit on sales $319,000 419,000 652,000 $1,390,000 $948,000 30 % Toulouse Co. $119,000 226,000 562,000 907,000 483,000 $1,390,000 $319,000 419,000 652,000 $1.390.000 $350,000 483,000 969,000 $1,802,000 $1,453,000 40 % Lautrec Co. $332,000 298,000 536,000 1,166,000 636,000 $1,802,000 $350,000 483,000 969,000 $1.802.000 Each of these companies has requested a loan of $50,000 for 6 months with no collateral offered. Because your bank has reached its quota for loans of this type, only one of these requests is to be granted. (a1) Compute the various ratios for each company. Assume that the ending account balances are representative of the entire year. (Round answer to 2 decimal places, e.g. 2.25.)
Transcribed Image Text:As loan analyst for Sage Bank, you have been presented the following information. Assets Cash Receivables Inventories Total current assets. Other assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Capital stock and retained earnings Total liabilities and stockholders' equitv Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Capital stock and retained earnings Total liabilities and stockholders' equity Annual sales Rate of gross profit on sales $319,000 419,000 652,000 $1,390,000 $948,000 30 % Toulouse Co. $119,000 226,000 562,000 907,000 483,000 $1,390,000 $319,000 419,000 652,000 $1.390.000 $350,000 483,000 969,000 $1,802,000 $1,453,000 40 % Lautrec Co. $332,000 298,000 536,000 1,166,000 636,000 $1,802,000 $350,000 483,000 969,000 $1.802.000 Each of these companies has requested a loan of $50,000 for 6 months with no collateral offered. Because your bank has reached its quota for loans of this type, only one of these requests is to be granted. (a1) Compute the various ratios for each company. Assume that the ending account balances are representative of the entire year. (Round answer to 2 decimal places, e.g. 2.25.)
Each of these companies has requested a loan of $50,000 for 6 months with no collateral offered. Because your bank has reached its quota for loans of this type, only one of these requests is to be granted. (a1) Compute the various ratios for each company. Assume that the ending account balances are representative of the entire year. (Round answer to 2 decimal places, e.g. 2.25.) Current ratio Acid-test ratio Accounts receivable turnover Inventory turnover Cash to current liabilities Toulouse Co. :1 :1 times times :1 Lautrec Co. :1 :1 times times :1
Transcribed Image Text:Each of these companies has requested a loan of $50,000 for 6 months with no collateral offered. Because your bank has reached its quota for loans of this type, only one of these requests is to be granted. (a1) Compute the various ratios for each company. Assume that the ending account balances are representative of the entire year. (Round answer to 2 decimal places, e.g. 2.25.) Current ratio Acid-test ratio Accounts receivable turnover Inventory turnover Cash to current liabilities Toulouse Co. :1 :1 times times :1 Lautrec Co. :1 :1 times times :1
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