The initial analysis should include the following:The ratio equationThe calculation of the ratio using the equation and the pre-assigned Quick Study or Exercise from the textbook. Use the result in a sentence; i.e. For every dollar invested in assets the company is earning 22.4 cents or 22.4% in net income. Then explain whether this is a good result or a result that needs improving.Use citations to cite any outside sources used.The original post should include at least three (3) sentences but no more than seven (7) sentences. Exercise 4-13 Computing the current ratio L A1 DUse the information in the adjusted trial balance reported in O Exercise 4-11 to compute the current ratioas of the balance sheet date (round the ratio to two decimals). Interpret the current ratio for the WilsonTrucking Company. Assume that the industry average for the current ratio is 1.5. Exercise 4-11 Preparing financial statements O C3Use the following adjusted year-end trial balance at December 31 of Wilson Trucking Company to preparethe (1) income statement and (2) statement of owner's equity for the year ended December 31. The K.Wilson, Capital account balance was $175,000 at December 31 of the prior year.Page 153Account TitleDebitCreditCash$ 8,000Accounts receivable17,500Office supplies3,000Trucks172,000Accumulated depreciation-Trucks$ 36,000Land85,000Accounts payable12,000Interest payable4,000Long-term notes payable53,000K. Wilson, CapitalK. Wilson, Withdrawals175,00020,000Trucking fees earned130,000Depreciation expense-Trucks23,500Salaries expense61,000Office supplies expense8,000Repairs expense-Trucks12,000Totals$410,000 $410,000Check Total assets, $249,500Eroroin o 4 12 Dronarin g a cloccifiod balance choot d ca

The current ratio is normally used to measure or assess the liquidity of the business; it also…

Exercise 4-11 Preparing financial statements L c3 Use the following adjusted year-end trial balance at December 31 of Wilson Trucking Company to prepare the (1) income statement and (2) statement of owner's equity for the year ended December 31. The K. Wilson, Capital account balance was $175,000 at December 31 of the prior year. Page 153 Account Title Debit Credit Cash $ 8,000 Accounts receivable 17,500 Office supplies 3,000 Trucks 172,000 Accumulated depreciation-Trucks $ 36,000 Land 85,000 Accounts payable 12,000 Interest payable 4,000 Long-term notes payable 53,000 K. Wilson, Capital 175,000 K. Wilson, Withdrawals 20,000 Trucking fees earned 130,000 Depreciation expense-Trucks 23,500 Salaries expense 61,000 Office supplies expense 8,000 Repairs expense-Trucks 12,000 Totals $410,000 $410,000

Exercise 4-11 Preparing financial statements L c3 Use the following adjusted year-end trial balance at December 31 of Wilson Trucking Company to prepare the (1) income statement and (2) statement of owner's equity for the year ended December 31. The K. Wilson, Capital account balance was $175,000 at December 31 of the prior year. Page 153 Account Title Debit Credit Cash $ 8,000 Accounts receivable 17,500 Office supplies 3,000 Trucks 172,000 Accumulated depreciation-Trucks $ 36,000 Land 85,000 Accounts payable 12,000 Interest payable 4,000 Long-term notes payable 53,000 K. Wilson, Capital 175,000 K. Wilson, Withdrawals 20,000 Trucking fees earned 130,000 Depreciation expense-Trucks 23,500 Salaries expense 61,000 Office supplies expense 8,000 Repairs expense-Trucks 12,000 Totals $410,000 $410,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

I need help to do question 9 from A to D and please include the formulas on how to solve using Excel and the answer for the Finance homework.
Complete a,b,c,d,& e please and thank you
Download the attached Excel file (First Q Profits Report W Goal Seek_Ver2.xlsx). Instructions: . There are 3 Worksheet Tabs in this Excel file; First Q, First Q Goal Seek, and Minivan Loan. • The First Q (First Quarter) tab shows the first quarter revenue and expenses of the Downtown Internet Cafe. For this tab, • Complete the Proportion column, cells G7 through G11 Each proportion value shows the % of the quarterly sale of that item over the entire sale. Calculate the Net Income row, cells B24 through F24. o Compute the Profit Margin row, Cells B25 through E25. o Add Net Income Sparkline for January through March in Cell H24. in For this tab
Please select THREE of the ratios listed below and perform them for years 2012 and 2011. Please interpret the data by including the following: (1) Write out the formula for each ratio you selected and show your calculations. (2) Discuss whether each ratio you selected measures liquidity or profitability and what those terms mean. (3) What factor(s) contributed to the increase or decrease from last year? Discuss whether those changes were favorable or unfavorable to the company and why? (4) What does each of your calculated ratios potentially mean for the company’s overall financial condition? Please assume the market price of the common stock on 12/31/11 was $113.40. Also, if you need any numbers from 2010 for averages, please use the following: Cash 300,000 Marketable securities 1,000,000 A/R 345,000 Inventory 647,000 Prepaids 220,000…
Please do not give solution in image format ? And Explain Proper Step by Step.
The current ratio reflects the relationship between the value of the current assetsand the extent of the current liabilities of a business. Q.1 Calculate the current ratio for Pearson & Litt for 2019. Q.2 Explain the results of the current‐test ratio.HINT: Include the minimum ratio recommended for the ratio in your answer.
PLEASE ANSWER WITH SOLUTIONS
base on the image provided answer the following a. What is the overall performance of the company in the next five (5) years? Justify your answer. b. At what year will the forecasted total operating expenses exceed the standard? Give at least two(2) possible reasons behind it.
Use the following information for Short Exercises S15-6 through S15-10. Accel’s Companies, a home improvement store chain, reported the following summarized figures: Requirements Compute the profit margin ratio for Accel’s Companies for 2018. Compute the rate of return on total assets for 2018.
Read the following questions carefully and select the BEST answer from the options provided. Take a photograph of the solutions to questions 1, 2, and 3. I. Problem Solving. Make a projection of the company's net income considering the given information. Do not forget to write the given information before proceeding to the questions. Round the answer to the nearest whole number. The CEO of PDL Corporation would like to see a five-year (2023-2027) cumulative net income projection. Consider the following information from 2022 as the basis. Assume the following: 1. Sales revenues increased by 10% each year. 2. Cost of sales increased by 12% each year. 3. Operating expenses increased by 11% each year. 4. Income tax rate is 35%. 2022 2023 2024 2025 Year 5 Gross Sales ₱ 1,988,500.00 Less: Cost of Sales 980,000.00 Gross Profit 1,008,500.00 Less: Operating Expenses 100,850.00 Net Income Before Tax 907,650.00 Income Tax Expenses…
Create a new sheet named vertical analysis in the Excel workbook and insert the necessary equations or functions in related cells to calculate vertical analysis for the income statement and balance sheet. STATEMENT OF INCOME 2020-12-31 2019-12-31 2018-12-31 2017-12-31 Create a new sheet named horizontal analysis in the Excel workbook and insert the necessary equations or functions in related cells to calculate horizontal analysis for Sales 768,109,000 1,105,696,000 1,194,376,000 835,983,000 the income statement and balance sheet. Sales Cost BALANCE SHEET 12/31/2020 12/31/2019 12/31/2018 12/31/2017 Total Income 768,109,000 1,105,696,000 1,194,376,000 835,983,000 Current Assets 340,079,000 320,122,000 339,609,000 213,006,000 Other Revenues 93,982,000 131,089,000 152,641,000 150,176,000 Inventory 51,999,000 42,607,000 43,580,000 34,013,000 Total Revenues 862,091,000 1,236,785,000 1,347,017,000 986,159,000 Investments 95,638,000 85,161,000 39,987,000 52,329,000 46,970,000 36,647,000…