Current assets for JC Inc. totalled $32,571, and the current ratio was 1.41. Assume that the following transactions were completed: (1) Purchased merchandise for $5,800 on short-term credit. (2) Purchased a delivery truck for $10,000-paid $2,890 cash and signed a two-year interest-bearing note for the balance. Required: 1. Determine without computations if the current ratio will increase, decrease, or remain unchanged after each transaction. Transaction (1) Transaction (2) Impact on Current Ratio 2. Compute the current ratio after each transaction. (Round the final answers to 2 decimal places.) Current Ratio
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- A) i. The following data were extracted from the financial statements of Zinc Incorporated. Assuming the year has 365 days, calculate the operating cycle and cash conversion cycle of Zinc Inc. Annual credit sales - $70,000 Annual cost of goods sold = $42,500 Inventory = $7,500 Accounts receivable = $4,800 Accounts payable= $4,000 II). Discuss three important ways in which the CCC could be reduced.In its most recent annual report, Appalachian Beverages reported current assets of $51,300 and a current ratio of 1.90. Assume that the following transactions were completed: (1) purchased merchandise for $5,700 on account and (2) purchased a delivery truck for $10,000, paying $2,000 cash and signing a two-year promissory note for the balance. Required:Compute the updated current ratio after each transaction, by showing the cumulative effects of the transactions in the following table. (Round your answers to 2 decimal places.)Klein Corporation reports the following summary data for the current year: Sales revenue totaled $130,750. Interest revenue for the period was $1,100. Interest expense for the period was $2,900. Cost of goods sold for the period was $83,000. Operating expenses, all paid in cash (except for depreciation of $7,500), were $24,000. Income tax expense for the period was $6.500. Accounts receivable (net) increased by $5,000 during the period. Accounts payable increased by $2,500 during the period. Inventory at the beginning and end of the period was $17,500 and $12,500, respectively. Cash increased during the period by $2,500. Assume all other current asset and current liability accounts remained constant during the period. Enter your answers as positive numbers. Compute the amount of cash collected from customers. Compute the amount of cash paid for inventory. Compute the amount of cash paid for operating expenses. Compute the amount of cash flows provided by (used in) operations. What…
- Bleeker Street Bounty Work Sheet (partial) For the year ended December 31, 20-- Account Title Income Statement Balance Sheet 'Debit Credit Debit Credit Cash 12,300 Accounts Receivable 25,000 Merchandise Inventory 16,000 Store Supplies 1,100 Office Supplies 600 Prepaid Insurance 1,500 Store Equipment 66,000 Accumulated Depreciation-Store Equipment 38,000 Office Equipment 18,000 Accumulated Depreciation-Office Equipment 10,000 Accounts Payable 22,300 Salaries Payable 400 Long-Term Notes Payable 36,000 Carlo Perez, Capital 50,600 Carlo Perez, Drawing 32,000 Income Summary 17,000 16,000 Sales 61,500 Sales Returns and Allowances 500 Purchases 23,000 700 Purchases Returns and AllowancesJuroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: Note: Round answers to two decimal places. 1. Calculate the times-interest-earned ratio. 2. Calculate the debt ratio. 3. Calculate the debt-to-equity ratio.Barga Company's net sales for Year 1 and Year 2 are $663,000 and $749,000, respectively. Its year-end balances of accounts receivable follow: Year 1, $61,000; and Year 2, $98,000. a. Complete the below table to calculate the days' sales uncollected at the end of each year. b. Did days' sales uncollected improve or worsen in Year 2 versus Year 1? Complete this question by entering your answers in the tabs below. Required A Required B Complete the below table to calculate the days' sales uncollected at the end of each year. Note: Do not round intermediate calculations. Round your "Days' Sales Uncollected" answers to 1 decimal place. Year 1: Year 2: Choose Numerator: Accounts receivable $ $ Days' Sales Uncollected 1 Choose Denominator: X /Net sales X 61,000 x 98,000 x 663,000/ $ 749,000/ $
- Barga Company's net sales for Year 1 and Year 2 are $666,000 and $747,000, respectively. Its year-end balances of accounts receivable follow: Year 1, $62,000; and Year 2, $95,000. a. Complete the below table to calculate the days' sales uncollected at the end of each year. b. Did days' sales uncollected improve or worsen in Year 2 versus Year 1? Complete this question by entering your answers In the tabs below. Required A Required B Complete the below table to calculate the days' sales uncollected at the end of each year. (Do not round intermediate calculations. Round your "Da Sales Uncollected" answers to 1 decimal place.) Days' Sales Uncollected Choose Denominator: Days Days' Sales Uncollected %3D Choose Numerator: Days' sales uncollected !! days Year 1: days Year 2: Required B >Using these data, construct the December 31, Year 2, balance sheet for your analysis. Operating expenses (excluding taxes and cost of goods sold for Year 2) are RM180,000. The tax rate is 40%. Assume a 360-day year in the ratio computations. No cash dividends are paid in either Year 1 or Year 2. Current assets consist of cash, accounts receivables and inventories.The financial statements of Minnesota Mining and Manufacturing Company (3M) report net sales of $20.0 billion. Accounts receivable (net) are $2.7 billion at the beginning of the year and $2.8 billion at the end of the year. Compute 3M’s accounts receivable turnover. (Round answer to 1 decimal place, e.g. 2.5.) 1. Accounts Receivable Turnover ____ times. Compute 3M’s average collection period for accounts receivable in days. (Round answer to 0 decimal places, e.g. 50. Use 365 days for calculation.) 2. Average Collection Period ____ days.
- Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.1x Days sales outstanding: 73.0 days* Inventory turnover ratio: 4x Fixed assets turnover: 3.0x Current ratio: 2.0x Gross profit margin on sales: (Sales Cost of goods sold)/Sales = 20% Calculation is based on a 365-day year. Do not round intermediate calculations. Round your answers to the nearest dollar. Cash Accounts receivable Inventories Fixed assets Total assets Sales Balance Sheet. $360,000 Current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Cost of goods sold $ $ 90,000 90,000A company has current assets of $92,000 (of which $37,000 is inventory and prepaid items) and current liabilities of $37,000. What is the current ratio? What is the acid-test ratio? If the company borrows $17,000 cash from a bank on a 120-day loan, what will its current ratio be? What will the acid-test ratio be? Current Ratio enter the ratio rounded to 2 decimal places :1 Acid Test Ratio enter the ratio rounded to 2 decimal places :1 New Current Ratio enter the ratio rounded to 2 decimal places :1 New Acid Test Ratio enter the ratio rounded to 2 decimal places :1Given the following information, complete the balance sheet shown next Collection period Days' sales in cash Current ratio Assets Current assets: Cash Inventory turnover Liabilities to assets Payables period (All sales are on credit. All calculations assume a 365-day year. The payat Note: Round your answers to the nearest whole dollar. Accounts receivable Inventory Total current assets Net fixed assets Total assets Liabilities and shareholders equity Current liabilities: Accounts payable Short-term debt Total current liabilities 70 days 32 days 2.2 5 70% 36 days Long-term debt Shareholders equity Total liabilities and equity times $ 1,300,000 S S 1,900,000 8,000,000 2.400.000 8.000.000