Current position analysis Sherwood, Inc., the parent company of Frito-Lay snack foods and Sherwood beverages, had the following current assets and current liabilities at the end of two recent years: Current Year (in millions) $2,359 1,675 5,326 1,170 390 312 7,488 Cash and cash equivalents $2,245 Short-term investments, at cost 4,169 Accounts and notes receivable, net 4,276 Inventories 1,561 Prepaid expenses and other current assets 577 Short-term obligations and other liabilities 3,314 7,376 Accounts payable a. Determine the (1) current ratio and (2) quick ratio for both years. Round your answers to one decimal place. Current Year Previous Year 1. Current ratio 2. Quick ratio Previous Year (in millions) b. The liquidity of Sherwood has short-term obligations. slightly over this time period. Both the current and quick ratios have Sherwood is a company with resources for meeting

Current position analysis Sherwood, Inc., the parent company of Frito-Lay snack foods and Sherwood beverages, had the following current assets and current liabilities at the end of two recent years: Current Year (in millions) $2,359 1,675 5,326 1,170 390 312 7,488 Cash and cash equivalents $2,245 Short-term investments, at cost 4,169 Accounts and notes receivable, net 4,276 Inventories 1,561 Prepaid expenses and other current assets 577 Short-term obligations and other liabilities 3,314 7,376 Accounts payable a. Determine the (1) current ratio and (2) quick ratio for both years. Round your answers to one decimal place. Current Year Previous Year 1. Current ratio 2. Quick ratio Previous Year (in millions) b. The liquidity of Sherwood has short-term obligations. slightly over this time period. Both the current and quick ratios have Sherwood is a company with resources for meeting

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Given the following Year 9 selected balance sheet data: Assets Cash on Hand $136,000 255,000 230,000 $485,000 Total Current Assets Total Fixed Asset Investments Total Assets Liabilities and Shareholder Equity Accounts Payable Overdraft Loan Payable 1-Year Bank Loan Payable Current Portion of Long-Term Loans Total Current Liabilities $ 66,000 10,000 17,000 93,000 46,000 139,000 Long-Term Bank Loans Total Liabilities Year 8 Year 9 Shareholder Equity: Balance Change Common Stock (at a par value of $0.50 per share Additional Capital Retained Earnings Total Shareholder Equity Total Liabilities and Shareholder Equity 10,050 81,500 162,450 254,000 10,050 81,500 254,450 346,000 $485,000 92,000 +92,000 Based on the above figures and the definition of the debt:equity percentages (or debt%:equity%) presented in the Help section for p. 5 of the Camera and Drone Journal, the company's debt:equity percentages (rounded to 2 decimal places) and its current ratio are: Copyright © by Glo-Bus Software,…
Working Capital and Short Term Liquidity RatiosBell Company has a current ratio of 2.85 on December 31. On that date the company's current assets are as follows: Cash $16,400 Short-term investments 49,000 Accounts receivable (net) 169,000 Inventory 200,000 Prepaid expenses 11,600 Current assets $446,000 Bell Company's current liabilities at the beginning of the year were $137,000 and during the year its operating activities provided a cash flow of $55,000.a. What are the firm's current liabilities on December 31?Round answer to the nearest whole number.Answerb. What is the firm's working capital on December 31?Round answer to the nearest whole number.Answerc. What is the quick ratio on December 31? Round answer to 2 decimal places.Answerd. What is the Bell's operating-cash-flow-to-current-liabilities ratio? Round answer to 2 decimal places.Answer PreviousSave AnswersNext
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Balance sheet data for Alvarez Company on December 31, the end of two recent fiscal years, follows: Current Year Previous Year Current assets $297,850 $185,020 Property, plant, and equipment 434,010 408,320 Intangible assets 119,140 44,660 Current liabilities 204,240 114,840 Long-term liabilities 272,320 216,920 Common stock 102,120 89,320 Retained earnings 272,320 216,920 A. Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and stockholders' equity item as a percent of the total liabilities and stockholders' equity. If required, round percentages to one decimal place.
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