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
icon
Related questions
Question

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 Condition
387
of $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 is
also presented on the balance sheets in exhibit 13.2, and we can verify the value reported.
EXHIBIT 13.2
2016
2015
Park Ridge
Homecare:
ASSETS
Balance Sheets as
Current assets
of December 31,
2016 and 2015 (in
Cash and cash equivalents
$ 113
$ 67
Short-term investments
147
137
Thousands)
Accounts receivable, net
727
476
Inventories
27
22
Total current assets
$1,014
$702
Investments
$ 125
$100
Property and equipment
Medical and office equipment
2$
56
$ 54
Vehicles
70
47
Total
$ 126
$ 101
Less: Accumulated depreciation
45)
( 24)
Net property and equipment
$ 81
$ 77
Total assets
$1,220
$879
LIABILITIES AND EQUITY
Current liabilities
Notes payable
2$
13
$ 13
Accounts payable
40
21
Accrued expenses
535
363
Total current liabilities
$ 588
$397
Long-term debt
154
167
$ 742
$564
$ 315
Total liabilities
Equity
$ 478
Total liabilities and equity
$1,220
$879
Transcribed Image Text:Chapter 13: Assessing Financial Condition 387 of $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 is also presented on the balance sheets in exhibit 13.2, and we can verify the value reported. EXHIBIT 13.2 2016 2015 Park Ridge Homecare: ASSETS Balance Sheets as Current assets of December 31, 2016 and 2015 (in Cash and cash equivalents $ 113 $ 67 Short-term investments 147 137 Thousands) Accounts receivable, net 727 476 Inventories 27 22 Total current assets $1,014 $702 Investments $ 125 $100 Property and equipment Medical and office equipment 2$ 56 $ 54 Vehicles 70 47 Total $ 126 $ 101 Less: Accumulated depreciation 45) ( 24) Net property and equipment $ 81 $ 77 Total assets $1,220 $879 LIABILITIES AND EQUITY Current liabilities Notes payable 2$ 13 $ 13 Accounts payable 40 21 Accrued expenses 535 363 Total current liabilities $ 588 $397 Long-term debt 154 167 $ 742 $564 $ 315 Total liabilities Equity $ 478 Total liabilities and equity $1,220 $879
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education