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b-1. Quick ratio b-2. Current ratio b-3. Working capital b-4. Debt ratio

b-1. Quick ratio b-2. Current ratio b-3. Working capital b-4. Debt ratio

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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ACCT 102 - Please Do All of Part B

A recent balance sheet of Sweet Tooth, Inc., included the following items, among others. (Dollar amounts are stated in thousands.) Cash Marketable securities (short-term) Accounts receivable Inventories Prepaid expenses Retained earnings Notes payable to banks (due within one year) Accounts payable Dividends payable Accrued liabilities (short-term) Income taxes payable 50,230 55,926 23,553 32,210 5,736 121,477 20,000 5,912 1,560 21,532 6,438 The company also reported total assets of $353,816 thousand, total liabilities of $81,630 thousand, and a return on total assets of 18.1 percent. Required: a. Compute Sweet Tooth's (1) quick assets, (2) current assets, and (3) urrent liabilities. b. Compute Sweet Tooth's (1) quick ratio, (2) current ratio, (3) working capital, and (4) debt ratio. (Round ratios to 1 decimal place.) Amount (thousands) a-1 Quick assets а-2 Current assets a-3. Current liabilities b-1. Quick ratio to 1 b-2. Current ratio to 1 b-3. Working capital b-4. Debt ratio %24
Transcribed Image Text:A recent balance sheet of Sweet Tooth, Inc., included the following items, among others. (Dollar amounts are stated in thousands.) Cash Marketable securities (short-term) Accounts receivable Inventories Prepaid expenses Retained earnings Notes payable to banks (due within one year) Accounts payable Dividends payable Accrued liabilities (short-term) Income taxes payable 50,230 55,926 23,553 32,210 5,736 121,477 20,000 5,912 1,560 21,532 6,438 The company also reported total assets of $353,816 thousand, total liabilities of $81,630 thousand, and a return on total assets of 18.1 percent. Required: a. Compute Sweet Tooth's (1) quick assets, (2) current assets, and (3) urrent liabilities. b. Compute Sweet Tooth's (1) quick ratio, (2) current ratio, (3) working capital, and (4) debt ratio. (Round ratios to 1 decimal place.) Amount (thousands) a-1 Quick assets а-2 Current assets a-3. Current liabilities b-1. Quick ratio to 1 b-2. Current ratio to 1 b-3. Working capital b-4. Debt ratio %24
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