Assume that the current ratio for Arch Company is 2.5, its acid-test ratio is 1.5, and its workingcapital is $320,000. Answer each of the following questions independently, always referring to theoriginal information.Required:a. How much does the firm have in current liabilities? (Do not round intermediate calculations.)b. If the only current assets shown on the balance sheet for Arch Company are Cash, AccountsReceivable, and Merchandise Inventory, how much does the firm have in MerchandiseInventory? (Do not round intermediate calculations.)c. If the firm collects an account receivable of $105,000, what will its new current ratio andworking capital be? (Round "Current ratio" to 1 decimal place.)d. If the firm pays an account payable of $56,000, what will its new current ratio and workingcapital be? (Do not round intermediate calculations. Round "Current ratio" to 1 decimalplace.)e. If the firm sells inventory that was purchased for $50,000 at a cash price of $61,000, what willits new acid-test ratio be? (Do not round intermediate calculations. Round your answer to 1decimal place.)a.Current liabilitiesb. Merchandise inventoryC.Current ratioWorking capitald.Current ratioWorking capitale.Acid-test ratio

Merchandise inventory is the inventory available for sale to the customers. Current ratio is a…

Answered: Assume that the current ratio for Arch…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Thickburger's net fixed assets = $200,000, total assets = $400,000, inventory =$50,000 and current liabilities = $100,000. All assets are classified as beingeither "current assets" or "fixed assets". What is the firm's current ratio?b. What is Thickburger's quick ratio?
Saddleback Company paid off $36,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation? Multiple Cholce Assets, $36,000 Increase; equlty. $36,000 Increase. Assets, $36,000 decrease: liabilitles, $36,000 decrease. Assets, $36,000 decrease; liabilities, $36,000 Increase. Llabilitles, $36,000 decrease; egulty, $36,000 Increase. Assets, $36,000 decrease; gulty $36,000 decrease.
A3)
How do I solve this?
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
The current year financial statements for two competitors are presented below. Please analyze their financials. Note: if a ratio cannot be solved given the data provided, please leave it blank. There are a few ratios that cannot be solved given the information provided. Balance sheet: Cash Accounts receivable (net) Inventory Blue Water Prime Fish $ 42,800 $ 19,200 36,400 Property & equipment (net) Other assets Total assets Current liabilities Long-term debt (interest rate: 10%) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity $ 432,600 Income statement: Sales revenue (1/3 on credit) $ 420,000 Cost of goods sold Net income Operating expenses Other data: Per share stock price at end of current year Average income tax rate (232,000) (164,600) 47,000 90,000 167,000 85,800 $ 432,600 $ 90,000 77,600 160,600 30,800 73,600 50,800 422,600 323,000 $ 852,000 $ 76,000 63,600 530,000 107,800 74,600 $ 852,000 $ 784,000 (401,800)…
The following data is available for Quick Serve Trading Ltd. Required: a) Calculate the operating cycle and the cash cycle b) Interpret and explain the outcomes
Please provide answer in text (Without image)
Give me three steps solution and explanation
The balance sheets of Xenon Company reports total assets of $888,000 and $949,000 at the beginning and end of the year, respectively. Sales revenues are $1.8 million, net income is $194,000, and net cash flows from operating activities are $162,000. Required: Calculate the cash return on assets, cash flow to sales, and asset turnover. (Do not round intermediate calculations. Round your final answers to 1 decimal place.) Cash return on assets Cash flow to sales Asset turnover % % times
The following information pertains to Carlton Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Cash and short-term investments Accounts receivable (net) Inventory Property, plant and equipment Total Assets Current liabilities Long-term liabilities Stockholders' equity-common Total Liabilities and stockholders' equity Sales Cost of goods sold Gross margin Operating expenses Net income Number of shares of common stock Market price of common stock Dividends per share Cash provided by operations Liabilities and Stockholders' Equity Income Statement What is the current ratio for this company? Round your answer to one decimal point. 0.00 Ob.0.80 Oc 1.16 Od 1.42 $ 40,000 25,000 20,000 210.000 $295.000 60,000 85,000 150.000 $295.000 $85.000 45.000 40,000 20.000 5.20.000 6.000000 $20 0.90 $30,000 D
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS