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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Problem 1Q

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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
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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:
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The following items are reported on a company's balance sheet: Cash $295,700 Marketable securities 231,000 Accounts receivable (net) 265,300 Inventory 132,000 Accounts payable 330,000 Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place. a. Current ratio b. Quick ratio

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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