Calculate the businesses financial ratio for 2015. Assume that Park Ridge had 18,000 in lease payment in 2015 use ratio analysis discussion to identify the applicable. Interpret the ratio. For analysis that the sector average data present in the ratio analysis sections are valid for 2015 ie:current ratio?Quick ratio?Cash ratio?Debt-equity ratio and equity multiplier?Total debt ratio? Chapter 13: Assessing Financial Condition387of $39,000 in 2015. The bottom of exhibit 13.1 reconciles the net cash flow with the end-ing cash balance shown on the balance sheet. For 2016, Park Ridge began with $67,000,experienced a cash inflow of $46,000 during the year, and ended the year with $67,000 +$46,000 = $113,000 in its cash and cash equivalents account. Cash and cash equivalents isalso presented on the balance sheets in exhibit 13.2, and we can verify the value reported.EXHIBIT 13.220162015Park RidgeHomecare:ASSETSBalance Sheets asCurrent assetsof December 31,2016 and 2015 (inCash and cash equivalents$ 113$ 67Short-term investments147137Thousands)Accounts receivable, net727476Inventories2722Total current assets$1,014$702Investments$ 125$100Property and equipmentMedical and office equipment2$56$ 54Vehicles7047Total$ 126$ 101Less: Accumulated depreciation45)( 24)Net property and equipment$ 81$ 77Total assets$1,220$879LIABILITIES AND EQUITYCurrent liabilitiesNotes payable2$13$ 13Accounts payable4021Accrued expenses535363Total current liabilities$ 588$397Long-term debt154167$ 742$564$ 315Total liabilitiesEquity$ 478Total liabilities and equity$1,220$879

Current ratio, quick ratio and cash ratio are measures of the liquidity position of a company, so…

Calculate the businesses financial ratio for 2015. Assume that Park Ridge had 18,000 in lease payment in 2015 use ratio analysis discussion to identify the applicable. Interpret the ratio. For analysis that the sector average data present in the ratio analysis sections are valid for 2015 ie: current ratio? Quick ratio? Cash ratio? Debt-equity ratio and equity multiplier? Total debt ratio?

Calculate the businesses financial ratio for 2015. Assume that Park Ridge had 18,000 in lease payment in 2015 use ratio analysis discussion to identify the applicable. Interpret the ratio. For analysis that the sector average data present in the ratio analysis sections are valid for 2015 ie: current ratio? Quick ratio? Cash ratio? Debt-equity ratio and equity multiplier? Total debt ratio?

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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