Cullumber Company provides you with the following balance sheet information as of December 31, 2017. Current assets $14,720 Current liabilities $15,360 Long-term assets 32,860 Long-term liabilities 16,860 Total assets $47,580 Stockholders’ equity 15,360 Total liabilities and stockholders’ equity $47,580 In addition, Cullumber reported net income for 2017 of $20,480, income tax expense of $3,904, and interest expense of $1,664. Assume that at the end of 2017, Cullumber used $3,720 cash to pay off $3,720 of accounts payable. How would the current ratio and working capital have changed? (Round current ratio to 2 decimal places, e.g. 2.75. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Current ratio enter current ratio rounded to 2 decimal places :1 Working capital $enter a dollar amount Compute the debt to assets ratio and the times interest earned for Cullumber for 2017. (Round answers to 2 decimal places, e.g. 2.75.) Debt to assets ratio enter debt to assets ratio :1 Times interest earned ratio enter Times interest earned ratio times
Cullumber Company provides you with the following balance sheet information as of December 31, 2017. Current assets $14,720 Current liabilities $15,360 Long-term assets 32,860 Long-term liabilities 16,860 Total assets $47,580 Stockholders’ equity 15,360 Total liabilities and stockholders’ equity $47,580 In addition, Cullumber reported net income for 2017 of $20,480, income tax expense of $3,904, and interest expense of $1,664. Assume that at the end of 2017, Cullumber used $3,720 cash to pay off $3,720 of accounts payable. How would the current ratio and working capital have changed? (Round current ratio to 2 decimal places, e.g. 2.75. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Current ratio enter current ratio rounded to 2 decimal places :1 Working capital $enter a dollar amount Compute the debt to assets ratio and the times interest earned for Cullumber for 2017. (Round answers to 2 decimal places, e.g. 2.75.) Debt to assets ratio enter debt to assets ratio :1 Times interest earned ratio enter Times interest earned ratio times
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Cullumber Company provides you with the following balance sheet information as of December 31, 2017.
In addition, Cullumber reported net income for 2017 of $20,480, income tax expense of $3,904, and interest expense of $1,664.
|
Current assets
|
$14,720 |
Current liabilities
|
$15,360 | |||
|---|---|---|---|---|---|---|
|
Long-term assets
|
32,860 |
Long-term liabilities
|
16,860 | |||
|
Total assets
|
$47,580 |
|
15,360 | |||
|
Total liabilities and stockholders’ equity
|
$47,580 |
In addition, Cullumber reported net income for 2017 of $20,480, income tax expense of $3,904, and interest expense of $1,664.
Assume that at the end of 2017, Cullumber used $3,720 cash to pay off $3,720 of accounts payable. How would the current ratio and working capital have changed? (Round current ratio to 2 decimal places, e.g. 2.75. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
|
Current ratio
|
enter current ratio rounded to 2 decimal places | :1 | |
|---|---|---|---|
|
Working capital
|
$enter a dollar amount |
Compute the debt to assets ratio and the times interest earned for Cullumber for 2017. (Round answers to 2 decimal places, e.g. 2.75.)
|
Debt to assets ratio
|
enter debt to assets ratio | :1 | |
|---|---|---|---|
|
Times interest earned ratio
|
enter Times interest earned ratio | times |
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