Big Beautiful Photo Shop has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2024. To answer this question, you gather the following data: Data Table s to two decimal places, X.XX.) Net Accounts Receivables 140,000 124,000 Merchandise Inventory 217,000 272,000 Total Assets 530,000 565,000 Total Current Liabilities 288,000 205,000 Long-term Notes Payable 40,000 50,000 Income from Operations 165,000 158,000 Clear All Check Answer Interest Expense 55,000 41,000
Big Beautiful Photo Shop has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2024. To answer this question, you gather the following data: Data Table s to two decimal places, X.XX.) Net Accounts Receivables 140,000 124,000 Merchandise Inventory 217,000 272,000 Total Assets 530,000 565,000 Total Current Liabilities 288,000 205,000 Long-term Notes Payable 40,000 50,000 Income from Operations 165,000 158,000 Clear All Check Answer Interest Expense 55,000 41,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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100%
All requirements if possible
Transcribed Image Text:Data Table
Big Beautiful Photo Shop
question, you gather the fo
E (Click the icon to view
ilities and
Requirements
2024
2023
Read the requirements.
Compute the following ratios for 2024 and 2023, and
evaluate the company's ability to pay its current liabilities
and total liabilities:
Cash
58,000 $ 47,000
Now, compute the current
Short-term Investments
34,000
a. Current ratio
d. Debt ratio
Current ratio
Net Accounts Receivables
140,000
124,000
b. Cash ratio
e. Debt to equity ratio
Merchandise Inventory
217,000
272,000
2024
C. Acid-test ratio
2023
Total Assets
530,000
565,000
Total Current Liabilities
288,000
205,000
Print
Done
Enter any number in the e
Transcribed Image Text:Big Beautiful Photo Shop has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2024. To answer this
question, you gather the following data:
Data Table
rs to two decimal places, X.XX.)
Net Accounts Receivables
140,000
124,000
Merchandise Inventory
217,000
272,000
Total Assets
530,000
565,000
Total Current Liabilities
288,000
205,000
Long-term Notes Payable
40,000
50,000
Income from Operations
165,000
158,000
Clear All
Check Answer
Interest Expense
55,000
41,000
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