Exercise 24-04 As loan analyst for Bramble Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash Receivables Inventories Total current assets Other assets Total assets Liabilities and Stockholders' Equity. Current liabilities Long-term liabilities Capital stock and retained earnings Total liabilities and stockholders' equity Annual sales Rate of gross profit on sales Current ratio Acid-test ratio $116,000 226,000 564,000 Accounts receivable turnover Inventory turnover Cash to current liabilities. 906,000 505,000 $1,411,000 $291,000 386,000 734,000 $1,411,000 $918,000 30% $332,000 315,000 541,000 Each of these companies has requested a loan of $50,000 for 6 months with no collateral offered. Because your bank has reached its quota for loans of this type, only one of these requests is to be granted Compute the various ratios for each company. (Round answer to 2 decimal places, e.g. 2.25.) Lautrec Co. Toulouse Co. 1,188,000 595,000 $1,783,000 $361,000 505,000 917,000 $1,783,000 $1,556,000 :1 : 1 times times 40 % : 1 : 1 : 1 times times : 1
Exercise 24-04 As loan analyst for Bramble Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash Receivables Inventories Total current assets Other assets Total assets Liabilities and Stockholders' Equity. Current liabilities Long-term liabilities Capital stock and retained earnings Total liabilities and stockholders' equity Annual sales Rate of gross profit on sales Current ratio Acid-test ratio $116,000 226,000 564,000 Accounts receivable turnover Inventory turnover Cash to current liabilities. 906,000 505,000 $1,411,000 $291,000 386,000 734,000 $1,411,000 $918,000 30% $332,000 315,000 541,000 Each of these companies has requested a loan of $50,000 for 6 months with no collateral offered. Because your bank has reached its quota for loans of this type, only one of these requests is to be granted Compute the various ratios for each company. (Round answer to 2 decimal places, e.g. 2.25.) Lautrec Co. Toulouse Co. 1,188,000 595,000 $1,783,000 $361,000 505,000 917,000 $1,783,000 $1,556,000 :1 : 1 times times 40 % : 1 : 1 : 1 times times : 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 24-04
As loan analyst for Bramble Bank, you have been presented the following information.
Toulouse Co. Lautrec Co.
Assets
Cash
Receivables
Inventories
Total current assets
Other assets
Total assets
Liabilities and Stockholders' Equity
Current liabilities
Current ratio
Long-term liabilities
Capital stock and retained earnings
Total liabilities and stockholders' equity $1,411,000
$918,000
Acid-test ratio
Accounts receivable turnover
$116,000
226,000
564,000
Inventory turnover
906,000
505,000
$1,411,000
Annual sales
Rate of gross profit on sales
Each of these companies has requested a loan of $50,000 for 6 months with no collateral offered. Because your bank has reached its quota for loans of this type, only one of these requests is to be granted.
Compute the various ratios for each company. (Round answer to 2 decimal places, e.g. 2.25.)
Cash to current liabilities
$291,000
386,000
734,000
30%
$332,000
315,000
541,000
1,188,000
595,000
$1,783,000
Toulouse Co.
$361,000
505,000
917,000
$1,783,000
$1,556,000
: 1
: 1
times
times
: 1
40 %
Lautrec Co.
1
: 1
times
times
1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F77905eba-5782-4a77-bc0a-c3ce9999fbde%2F23ef1939-09ba-4d25-bf79-c0bce9f22c72%2F4suvvxp_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 24-04
As loan analyst for Bramble Bank, you have been presented the following information.
Toulouse Co. Lautrec Co.
Assets
Cash
Receivables
Inventories
Total current assets
Other assets
Total assets
Liabilities and Stockholders' Equity
Current liabilities
Current ratio
Long-term liabilities
Capital stock and retained earnings
Total liabilities and stockholders' equity $1,411,000
$918,000
Acid-test ratio
Accounts receivable turnover
$116,000
226,000
564,000
Inventory turnover
906,000
505,000
$1,411,000
Annual sales
Rate of gross profit on sales
Each of these companies has requested a loan of $50,000 for 6 months with no collateral offered. Because your bank has reached its quota for loans of this type, only one of these requests is to be granted.
Compute the various ratios for each company. (Round answer to 2 decimal places, e.g. 2.25.)
Cash to current liabilities
$291,000
386,000
734,000
30%
$332,000
315,000
541,000
1,188,000
595,000
$1,783,000
Toulouse Co.
$361,000
505,000
917,000
$1,783,000
$1,556,000
: 1
: 1
times
times
: 1
40 %
Lautrec Co.
1
: 1
times
times
1
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