Current Position AnalysisThe following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years:Current YearPrevious YearCurrent assets:Cash$594,300$495,600Marketable securities688,200557,600Accounts and notes receivable (net)281,500185,800Inventories852,700575,800Prepaid expenses439,300368,200Total current assets$2,856,000$2,183,000Current liabilities:Accounts and notes payable(short-term)Accrued liabilitiesTotal current liabilities$394,400$413,000285,600177,000$680,000$590,000a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.Current YearPrevious Year1. Working capital2. Current ratio3. Quick ratio$SA

Step 1:Introduction:-Working Capital means the capital required for day to day operating activities.…

Answered: Current Position Analysis The following…

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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ces Income statement Sales revenue Cost of goods sold Gross profit Operating expenses and interest expense Pretax income Income tax Net income Balance sheet Cash Accounts receivable (net) Inventory Property and equipment (net) Total assets Current liabilities (no interest) Long-term liabilities (interest rate: 12%) Common stock ($5 par value, 7,500 shares outstanding) Retained earnings Total liabilities and stockholders' equity Return on assets Total asset turnover Net profit margin % Year 2 % $ 220,000 119,500 100,500 59,000 41,500 11,000 $ 30,500 $7,000 15,500 43,000 49,500 $ 115,000 $ 17,500 46,500 37,500 Year 11 $ 174,500 103,000 71,500 54,500 17,000 5,500 $ 11,500 2. Compute return on assets, total asset turnover, and the net profit margin for Year 2. Note: Round your answers to 2 decimal places. $ 8,500 19,500 38,400 41,000 $ 107,400 $ 18,500 46,500 37,500 4,900 13,500 $ 115,000 $ 107,400
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Ratio of liabilities to stockholders equity intrest earned The following data were taken from the financial statements of Hunters Inc.for December 31 of two recent years: The income before income tax was $480,000 and $420,000 for the current and previous years,respectively. a. Determine the ratio of liabilities to stockholders equity at the end of each year.Round to one decimal place. b. Determine the times interest earned ratio for both years.Round to one decimal place. c. What conclusion can be drawn from these data as the company's ability to meet its currently maturing debts?
The comparative accounts payable and long-term debt balances for a company follow. Current Year Previous YearAccounts payable $114,240 $102,000Long-term debt 127,200 120,000 Based on this information, what is the amount and percentage of increase or decrease that wouldbe shown on a balance sheet with horizontal analysis?
The balance sheet data of Randolph Company for two recent years appears below: Assets: Year 2 Year 1 Current assets $445 $280 Plant assets 680 520 Total assets $1,125 $800 Liabilities and stockholders' equity: Current liabilities $285 $120 Long-term debt 255 160 Common stock 325 320 Retained earnings 260 200 Total liabilities and stockholders' equity $1,125 $800 Required: b. Using vertical analysis, prepare a comparative balance sheet. If required, round your answers to one decimal place. Randolph Company Comparative Balance Sheet For the Years Ended December 31, Year 2 and Year 1 Assets Year 2Amount Year 2Percent Year 1Amount Year 1Percent Current assets $445 fill in the blank 2e1a1e0b0fbcf94_1% $280 fill in the blank 2e1a1e0b0fbcf94_2% Plant assets 680 fill in the blank 2e1a1e0b0fbcf94_3 520 fill in the blank 2e1a1e0b0fbcf94_4 Total assets $1,125 fill in the blank 2e1a1e0b0fbcf94_5% $800 fill in the…
A condensed balance sheet for Simultech Corporation and a partially completed vertical analysis are presented below. Complete the vertical analysis by computing each missing line item as a percentage of total assets. (Round your answers to the nearest whole percent.) SIMULTECH CORPORATION Balance Sheet (summarized) January 31 (in millions of U.S. dollars) Cash $433 29 % Current Liabilities $409 27 % Accounts Receivable 294 19 Long-term Liabilities 495 33 Inventory 206 14 Total Liabilities 904 Other Current Assets 109 Common Stock 118 Property and Equipment 27 2 Retained Earnings 492 32 Other Assets 445 29 Total Stockholders’ Equity 610 Total Assets $1,514 100 % Total Liabilities & Stockholders’ Equity $1,514 100 % 2A. What percentage of Simultech’s total assets relate to inventory? (Round your answer to the nearest whole percent.) 2B. What percentage of Simultech’s total assets relate to property…
Accounting Item Prior year Current year Accounts payable 8,191.00 7,813.00 Accounts receivable 6,005.00 6,798.00 Accruals 1,036.00 1,622.00 Cash ??? ??? Common Stock 10,961.00 12,712.00 COGS 12,797.00 18,122.00 Current portion long-term debt 4,914.00 5,086.00 Depreciation expense 2,500 2,842.00 Interest expense 733 417 Inventories 4,175.00 4,807.00 Long-term debt 13,319.00 14,034.00 Net fixed assets 51,854.00 54,984.00 Notes payable 4,372.00 9,863.00 Operating expenses (excl. depr.) 13,977 18,172 Retained earnings 28,779.00 29,650.00 Sales 35,119 47,875.00 Taxes 2,084 2,775 What is the firm's net income in the current year? (5547.00?) What is the firm's dividend payment in the current year?
The comparative accounts payable and long-term debt balances for a company follow. Current Year Previous Year Accounts payable $47,481 $39,900 Long-term debt 44,650 47,000 Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis? Enter all answers as positive numbers. Amount of Change Increase/Decrease Percentage Accounts payable $fill in the blank 1 IncreaseDecrease fill in the blank 3 % Long-term debt $fill in the blank 4 IncreaseDecrease fill in the blank 6 %
Prior Year Current Year Accounts payable 3,153.00 5,915.00 Accounts receivable 6,935.00 9,046.00 Accruals 5,794.00 6,085.00 Additional paid in capital 19,655.00 13,876.00 Cash. ??? ??? Common Stock 2,850 2,850 COGS 22,169.00 18,794.00 Current portion long-term debt 500 500 Depreciation expense 1,016.00 1,037.00 Interest expense 1,276.00 1,138.00 Inventories 3,041.00 6,672.00 Long-term debt 16,904.00 22,546.00 Net fixed assets 75,987.00 73,861.00 Notes payable 4,002.00 6,534.00 Operating expenses (excl. depr.) 19,950 20,000 Retained earnings 35,536.00 34,724.00 Sales 46,360 45,799.00 Taxes 350 920 Category ww What is the firm's total change in cash from the prior year to the current year?
Working Capital and Short‑Term Liquidity Ratios Bell Company has a current ratio of 3.00 on December 31. On that date the company’s current assets are as follows: Cash $29,000 Short-term investments 49,400 Accounts receivable (net) 170,000 Inventory 200,000 Prepaid expenses 11,600 Current assets $460,000 Bell Company’s current liabilities at the beginning of the year were $140,000 and during the year its operating activities provided a cash flow of $60,000. a. What are the firm’s current liabilities on December 31? Round answer to the nearest whole number.Answer b. What is the firm’s working capital on December 31? Round answer to the nearest whole number. Answer c. What is the quick ratio on December 31? Round answer to 2 decimal places. Answer d. What is the Bell’s operating-cash-flow-to-current-liabilities ratio? Round answer to 2 decimal places. Answer
Item Prior year Current year Accounts payable 8,109.00 7,758.00 Accounts receivable 6,059.00 6,782.00 Accruals 1,036.00 1,609.00 Cash ??? ??? Common Stock 11,891.00 11,189.00 COGS 12,683.00 18,018.00 Current portion long-term debt 4,980.00 4,993.00 Depreciation expense 2,500 2,813.00 Interest expense 733 417 Inventories 4,192.00 4,777.00 Long-term debt 13,329.00 13,523.00 Net fixed assets 50,636.00 54,376.00 Notes payable 4,329.00 9,999.00 Operating expenses (excl. depr.) 13,977 18,172 Retained earnings 28,278.00 29,801.00 Sales 35,119 47,221.00 Taxes 2,084 2,775 What is the firm's total change in cash from the prior year to the current year?
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