Homework Help is Here – Start Your Trial Now!
Business
Accounting
Compute for the following: 1. Current Ratio 2. Quick Ratio 3. Debt Ratio 4. Equity Ratio

Compute for the following: 1. Current Ratio 2. Quick Ratio 3. Debt Ratio 4. Equity Ratio

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Compute for the following:
1. Current Ratio

2. Quick Ratio

3. Debt Ratio

4. Equity Ratio

ull Globe LTE 17:34 O O 26% Done 03_Handout_1(12).pdf ESTI SH1663 Sample Financial Statements Verona Carinderia Verona Carinderia Income Statement December 21, 20AA Amount Percent Net Sales 7,457,736 100% Less: Cost of Goods Sold 6,228,552 84% Gross Profit 1,229,184 16% Less: Other Expenses 886,177 12% Operating Income Less: Interest Expense 343,007 4% 74,208 1% Net Income 268,799 3% Verona Carinderia Balance Sheet December 31, 20AA Amount Percent Cash 91,626 2.3% Net Accounts Receivable 939,460 24.0% Inventories 1,836,634 46.8% Prepaid Rent 180,000 4.6% Total Current Assets 3,047,720 77.7% Equipment and Fixtures Less: Accumulated Depreciation 1,280,961 32.7% 406,728 10.4% Total Fixed Assets 874,233 22.3% TOTAL ASSETS 3,921,953 100% Accounts Payable 467,376 11.9% Notes Payable 321,000 8.2% Accruals 436,560 11.1% Total Current Liabilities 1,224,936 31.2% Long-term Debt Owner's Capital 608,000 15.5% 2,089,017 53.3% TOTAL LIABILITIES AND CAPITAL 3,921,953 100% *Property of STI Page 1 of 2 03 Handout 1 STI SH1663 Shoppersville Trading Shoppersville Trading Comparative Income Statements For the years ended 2016 and 2015 2016 2015 Amount Net Sales 1,080,000 900,000 20.0% Less: Cost of Goods Sold 636,000 504,000 26.2% Gross Profit 444.000 396.000 12 1%
Transcribed Image Text:ull Globe LTE 17:34 O O 26% Done 03_Handout_1(12).pdf ESTI SH1663 Sample Financial Statements Verona Carinderia Verona Carinderia Income Statement December 21, 20AA Amount Percent Net Sales 7,457,736 100% Less: Cost of Goods Sold 6,228,552 84% Gross Profit 1,229,184 16% Less: Other Expenses 886,177 12% Operating Income Less: Interest Expense 343,007 4% 74,208 1% Net Income 268,799 3% Verona Carinderia Balance Sheet December 31, 20AA Amount Percent Cash 91,626 2.3% Net Accounts Receivable 939,460 24.0% Inventories 1,836,634 46.8% Prepaid Rent 180,000 4.6% Total Current Assets 3,047,720 77.7% Equipment and Fixtures Less: Accumulated Depreciation 1,280,961 32.7% 406,728 10.4% Total Fixed Assets 874,233 22.3% TOTAL ASSETS 3,921,953 100% Accounts Payable 467,376 11.9% Notes Payable 321,000 8.2% Accruals 436,560 11.1% Total Current Liabilities 1,224,936 31.2% Long-term Debt Owner's Capital 608,000 15.5% 2,089,017 53.3% TOTAL LIABILITIES AND CAPITAL 3,921,953 100% *Property of STI Page 1 of 2 03 Handout 1 STI SH1663 Shoppersville Trading Shoppersville Trading Comparative Income Statements For the years ended 2016 and 2015 2016 2015 Amount Net Sales 1,080,000 900,000 20.0% Less: Cost of Goods Sold 636,000 504,000 26.2% Gross Profit 444.000 396.000 12 1%
Total Current Assets 3,047,720 77.7% ull Globe LTE 17:34 © O 26% Equipment and Fixtures Less: Accumulated Depreciation 1,280,961 32.7% 406.728 10.4% Done 03_Handout_1(12).pdf 100% Accounts Payable 467,376 11.9% Notes Payable 321,000 8.2% Accruals 436,560 11.1% Total Current Liabilities 1,224,936 31.2% Long-term Debt Owner's Capital 608,000 15.5% 2,089,017 53.3% TOTAL LIABILITIES AND CAPITAL 3,921,953 100% 03 Handout 1 *Property of STI Page 1 of 2 STI SH1663 Shoppersville Trading Shoppersville Trading Comparative Income Statements For the years ended 2016 and 2015 2016 2015 Amount Net Sales 1,080,000 900,000 20.0% Less: Cost of Goods Sold 636,000 504,000 26.2% Gross Profit 444,000 396,000 12.1% Less: Operating Expenses 291,600 204,000 42.9% Operating Income Less: Interest Expense 152,400 192,000 -20.6% 28,800 36,000 -20.0% Income Before Income Tax 123,600 156,000 -20.8% Less: Income Tax 43,260 54,600 -20.8% Net Income 80,340 101,400 -20.8% Shoppersville Trading Comparative Balance Sheets For the December 31, 2016 and December 31, 2015 2016 2015 Amount Cash 208,000 200,000 4.0% Inventory 260,000 145,600 78.6% Accounts Receivable 72,000 126,000 -42.9% Total Current Assets 540,000 471,600 14.5% Property and Equipment 600,000 560,400 7.1% TOTAL ASSETS 1,140,000 1,032,000 10.5% Liabilities and Stockholders' Equity LIABILITIES Notes Payable 134,400 112,800 19.1% Long-term debts 240,000 300,000 -20.0% Total Liabilities 374,400 412,800 -9.3% STOCKHOLDERS' EQUITY Preferred Stock 120,000 120,000 0.0% Common Stock 300,000 240,000 25.0% Additional Paid-in Capital 84,000 48,000 75.0% Retained Earnings Total Stockholders' Equity 261,600 211,200 23.9% 765,600 619,200 23.6% TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY 1,140,000 1,032,000 10.5% References: Benito, P. P., Chan Pao, T. P., & Yumang, K. (2016). Exploring small busines and personal finance in senior high. Quezon City: Phoenix Publishing House. Lopez-Mariano, N. D. (2014). Elements of finance. Quezon City: Rex Book Store. 03 Handout 1 *Property of STI Page 2 of 2
Transcribed Image Text:Total Current Assets 3,047,720 77.7% ull Globe LTE 17:34 © O 26% Equipment and Fixtures Less: Accumulated Depreciation 1,280,961 32.7% 406.728 10.4% Done 03_Handout_1(12).pdf 100% Accounts Payable 467,376 11.9% Notes Payable 321,000 8.2% Accruals 436,560 11.1% Total Current Liabilities 1,224,936 31.2% Long-term Debt Owner's Capital 608,000 15.5% 2,089,017 53.3% TOTAL LIABILITIES AND CAPITAL 3,921,953 100% 03 Handout 1 *Property of STI Page 1 of 2 STI SH1663 Shoppersville Trading Shoppersville Trading Comparative Income Statements For the years ended 2016 and 2015 2016 2015 Amount Net Sales 1,080,000 900,000 20.0% Less: Cost of Goods Sold 636,000 504,000 26.2% Gross Profit 444,000 396,000 12.1% Less: Operating Expenses 291,600 204,000 42.9% Operating Income Less: Interest Expense 152,400 192,000 -20.6% 28,800 36,000 -20.0% Income Before Income Tax 123,600 156,000 -20.8% Less: Income Tax 43,260 54,600 -20.8% Net Income 80,340 101,400 -20.8% Shoppersville Trading Comparative Balance Sheets For the December 31, 2016 and December 31, 2015 2016 2015 Amount Cash 208,000 200,000 4.0% Inventory 260,000 145,600 78.6% Accounts Receivable 72,000 126,000 -42.9% Total Current Assets 540,000 471,600 14.5% Property and Equipment 600,000 560,400 7.1% TOTAL ASSETS 1,140,000 1,032,000 10.5% Liabilities and Stockholders' Equity LIABILITIES Notes Payable 134,400 112,800 19.1% Long-term debts 240,000 300,000 -20.0% Total Liabilities 374,400 412,800 -9.3% STOCKHOLDERS' EQUITY Preferred Stock 120,000 120,000 0.0% Common Stock 300,000 240,000 25.0% Additional Paid-in Capital 84,000 48,000 75.0% Retained Earnings Total Stockholders' Equity 261,600 211,200 23.9% 765,600 619,200 23.6% TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY 1,140,000 1,032,000 10.5% References: Benito, P. P., Chan Pao, T. P., & Yumang, K. (2016). Exploring small busines and personal finance in senior high. Quezon City: Phoenix Publishing House. Lopez-Mariano, N. D. (2014). Elements of finance. Quezon City: Rex Book Store. 03 Handout 1 *Property of STI Page 2 of 2
Expert Solution
steps

Step by step

Solved in 3 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar 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
SEE MORE TEXTBOOKS