Effect of Transactions on Current Position AnalysisData pertaining to the current position of Lucroy Industries Inc. are as follows:Cash$430,000Marketable securities190,000Accounts and notes receivable (net)345,000Inventories750,000Prepaid expenses46,000Accounts payable200,000Notes payable (short-term)245,000Accrued expenses305,000Required:1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios to one decimal place. a. Working capitalb. Current ratioc. Quick ratio2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions, and record the results in the appropriatecolumns. Consider each transaction separately and assume that only that transaction affects the data given. Round ratios to one decimal place.TransactionWorking CapitalCurrent RatioQuick Ratioa.Sold marketable securities at no gain or loss, $60,000.b. Paid accounts payable, $120,000.c. Purchased goods on account, $135,000.d. Paid notes payable, $110,000.e. Declared a cash dividend, $155,000.f. Declared a common stock dividend on common stock, $40,000.g. Borrowed cash from bank on a long-term note, $230,000.h. Received cash on account, $125,000.i. Issued additional shares of stock for cash, $585,000.j. Paid cash for prepaid expenses, $10,000.ID

Formulas: Working Capital: = Current Assets - Current Liabilities Current Ratio: = Current…

Answered: Compute (a) the working capital, (b)…

Business

Accounting

Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios to one decimal place.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Ratio AnalysisPresented below are summary financial data from Pompeo’s annual report: Amounts in millions Balance Sheet Cash and Cash Equivalents $1,865 Marketable Securities 19,100 Accounts Receivable (net) 9,367 Total Current Assets 39,088 Total Assets 123,078 Current Liabilities 39,255 Long-Term Debt 7,279 Shareholders’ Equity 68,278 Income Statement Interest Expense 375 Net Income Before Taxes 14,007 Calculate the following ratios:(Round to 2 decimal points) a. Times-interest-earned ratio Answer b. Quick ratio Answer c. Current ratio Answer PreviousSave AnswersNext
The following information was taken from Slater Company's balance sheet:Fixed assets (net) $1,706,568Long-term liabilities 404,400Total liabilities 763,420Total stockholders' equity 2,009,000 Determine the company's (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders' equity. Round your answers to two decimal places. a. Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders' equity
Financial Statement Analysis Compute for Profitability Ratio with Substantial Analysis: a. Gross Profit Margin b. Profit Margin c. Return on Total Assets d. Return on Equity
Balance Sheet You are evaluating the balance sheet for Cypress Corporation. From the balance sheet you find the following balances: Cash and marketable securities = $670,000, Accounts receivable = $870,000, Inventory = $570,000, Accrued wages and taxes = $111,000, Accounts payable = $207,000, and Notes payable = $1,070,000. What is Cypress's net working capital? Multiple Choice $1,388,000 O $2,110,000 $722,000 O $3,498,000
The following items are reported on a company's balance sheet: $212,700 90,200 252,800 196,700 278,400 Cash Marketable securities Accounts receivable Inventory Accounts payable Determine the (a) current ratio, and (b) quick ratio. Round your answers to one decimal place. a. Current ratio b. Quick ratio
Calculating the Current Ratio and the Quick (or Acid-Test) Ratio LoLo Lemon Company has current assets equal to $500,000. Of these, $300,000 is cash, $75,000 is accounts receivable, $125,000 is inventory, and the remainder is marketable securities. Current liabilities total $425,000. Required: Note: Round answers to two decimal places. 1 Esiculate the current ratio. 2. Calculate the quick ratio (acid-test ratio).
The following items are reported on a company's balance sheet: Cash $579,700 Marketable securities 452,900 Accounts receivable (net) 520,200 Inventory 258,800 Accounts payable 647,000 Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place. a. Current ratio b. Quick ratio
The current asset section of the Excalibur Tire Company's balance sheet consists of cash, marketable securities, accounts receivable, and inventory. The balance sheet revealed the following: Inventory Total assets Current ratio Acid-test ratio Debt to equity ratio $ 880,000 $ 3,200,000 1. Current assets 2. Shareholders' equity 3. Long-term assets 4. Long-term liabilities 2.50 1.50 1.5 Required: Determine the following balance sheet items:
Ratio Analysis Presented below are summary financial data from Pompeo’s annual report: Amounts in millions Balance sheet Cash and cash equivalents $2,712 Marketable securities 27,128 Accounts receivable (net) 14,051 Total current assets 58,632 Total assets 184,617 Current liabilities 66,017 Long-term debt 12,738 Shareholders’ equity 119,487 Income Statement Interest expense 539 Net income before taxes 24,512 Calculate the following ratios: (round to two decimal places) a. Times-interest-earned ratio b. Quick ratio c. Current ratio
Selected condensed data taken from a recent balance sheet of Carla Vista Inc. are as follows. CARLA VISTA INC.Balance Sheet (partial) Cash $2,352,000 Short-term investments 4,962,000 Accounts receivable 6,430,000 Inventory 20,839,000 Prepaid assets 571,000 Total current assets $35,154,000 Total current liabilities $18,484,000 (a)Calculate the (1) current ratio and (2) acid-test ratio. (Round current ratio to 1 decimal place, e.g. 52.7 and acid-test ratio to 2 decimal places, e.g. 52.75.) 1. Current ratio enter Current ratio rounded to 1 decimal place 2. Acid-test ratio enter Acid-test ratio rounded to 2 decimal places
based on the ratios what can you say about the company's liquidity? Is it liquid enough to convert its asset in to cash immediately or within one year?
What's the total asset turnover ratio of this company? Assets: Cash and marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Fixed assets Less: accum. depr. Net fixed assets Total assets Liabilities: Accounts payable Notes payable Accrued taxes Total current liabilities Long-term debt Owner's equity (1 million shares of common stock outstanding) Total liabilities and owner's equity Net sales (all credit) Less: Cost of goods sold Selling and administrative expense Depreciation expense Interest expense Earnings before taxes Income taxes Net income 1.41 2.33 O 4.45 1.11 8,000,000 (2,075,000) $600,000 900,000 1,500,000 75,000 $3,075,000 $5,925.000 $9,000,000 $800,000 700,000 50,000 $1,550,000 2,500,000 4,950,000 $9,000,000 $10,000,000 (3,000,000) (2,000,000) (250,000) (200,000) 4,550,000 (1,820,000) $2,730,000

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bartleby, a Learneo, Inc. business

Cash	$430,000
Marketable securities	190,000
Accounts and notes receivable (net)	345,000
Inventories	750,000
Prepaid expenses	46,000
Accounts payable	200,000
Notes payable (short-term)	245,000
Accrued expenses	305,000