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Exercise 12-7 (Algo) Calculate risk ratios (LO12-3) The balance sheets for Monitor World Corporation and additional information are provided below. MONITOR WORLD CORPORATION Balance Sheets December 31, 2024 and 2023 Assets Current assets: Cash Accounts receivable Inventory Investments Long-term assets: Land Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable. Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 2024 $170,200 68,000 90,000 3,500 2023 $94,000 5,500 7,500 100,000 650,000 266,700 $1,123,700 $115,000 87,000 75,000 1,500 430,000 740,000 (378,000) (218,000) $1,123,700 $1,110,500 430,000 620,000 $80,000 11,500 4,500 200,000 650,000 164,500 $1,110,500

Exercise 12-7 (Algo) Calculate risk ratios (LO12-3) The balance sheets for Monitor World Corporation and additional information are provided below. MONITOR WORLD CORPORATION Balance Sheets December 31, 2024 and 2023 Assets Current assets: Cash Accounts receivable Inventory Investments Long-term assets: Land Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable. Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 2024 $170,200 68,000 90,000 3,500 2023 $94,000 5,500 7,500 100,000 650,000 266,700 $1,123,700 $115,000 87,000 75,000 1,500 430,000 740,000 (378,000) (218,000) $1,123,700 $1,110,500 430,000 620,000 $80,000 11,500 4,500 200,000 650,000 164,500 $1,110,500

FINANCIAL ACCOUNTING
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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es Exercise 12-7 (Algo) Calculate risk ratios (LO12-3) The balance sheets for Monitor World Corporation and additional information are provided below. MONITOR WORLD CORPORATION Balance Sheets December 31, 2024 and 2023 Assets Current assets: Cash Accounts receivable Inventory Investments Long-term assets: Land Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 2024 $170,200 68,000 90,000 3,500 2023 430,000 740,000 $115,000 87,000 75,000 1,500 430,000 620,000 (378,000) (218,000) $1,123,700 $1,110,500 $94,000 $80,000 5,500 11,500 7,500 4,500 100,000 200,000 650,000 650,000 266,700 164,500 $1,123,700 $1,110,500
Transcribed Image Text:es Exercise 12-7 (Algo) Calculate risk ratios (LO12-3) The balance sheets for Monitor World Corporation and additional information are provided below. MONITOR WORLD CORPORATION Balance Sheets December 31, 2024 and 2023 Assets Current assets: Cash Accounts receivable Inventory Investments Long-term assets: Land Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 2024 $170,200 68,000 90,000 3,500 2023 430,000 740,000 $115,000 87,000 75,000 1,500 430,000 620,000 (378,000) (218,000) $1,123,700 $1,110,500 $94,000 $80,000 5,500 11,500 7,500 4,500 100,000 200,000 650,000 650,000 266,700 164,500 $1,123,700 $1,110,500
5 Additional information for 2024: 1. Net income is $102,200. 2. Sales on account are $1,348,500. 3. Cost of goods sold is $1,056,000. Required: 1. Calculate the following risk ratios for 2024: 2. When we compare two companies, can one have a higher current ratio while the other has a higher acid-test ratio? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the following risk ratios for 2024: (Round your answers to 1 decimal place.) Risk Ratios a. Receivables turnover ratio b. Inventory turnover ratio c. Current ratio d. Acid-test ratio e. Debt to equity ratio times times %
Transcribed Image Text:5 Additional information for 2024: 1. Net income is $102,200. 2. Sales on account are $1,348,500. 3. Cost of goods sold is $1,056,000. Required: 1. Calculate the following risk ratios for 2024: 2. When we compare two companies, can one have a higher current ratio while the other has a higher acid-test ratio? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the following risk ratios for 2024: (Round your answers to 1 decimal place.) Risk Ratios a. Receivables turnover ratio b. Inventory turnover ratio c. Current ratio d. Acid-test ratio e. Debt to equity ratio times times %
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