Exercise 5-14 Computing and analyzing acid-test and current ratios LO A1$2,000 SCashShort-tere investerntsCurrent receivablesInventoryPrepaid expensesTotal current assets110 $1,000se35e4702,6002,4204,230$5, 200 3,e0 S7,410Current liabililes$2,000 $1,000 s3,00Compute the current ratio and acid test ratio for each of the following separate casesCurent RatioChoose NumeratorChoose Denominator:Current RatioCurrent ratioCamaro5.200 S3.500 7S410 22.0001.0003 8002.60 to 1GTO350 to 1Torino195 to 1Acid Test RatioChoose NumeratorChoose DenominatorAcid-Test RatioAcid-test ratioCamaro2.0001,0003.800128 to 1GTO5.5000.50 to 10 60 to 1Torino2.260

The current ratio and acid test ratio both the liquidity ratio. They are used to assess the…

Answered: Exercise 5-14 Computing and analyzing…

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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Required Information Problem 12-6B Use ratios to analyze risk and profitability (LO12-3, 12-4) (The following information applies to the questions displayed below.] Income statement and balance sheet data for The Athletic Attic are provided below. THE ATHLETIC ATTIC Incone Statements For the years ended December 31 2022 $12, see, eee 8, 150,eee 4,350,000 2021 Net sales Cost of goods sold Gross profit Expenses: Operating expenses bepreciation expense Interest expense Income tax expense Total expenses $11,0se,000 6,900,000 4,150,000 1,750,eee 200,000 55,000 58e,e00 2,585,000 $ 1,765,000 1,700,000 200, e00 55,000 500,000 2,455,e00 $ 1,695,000 Net incone THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Supplics Long term assets: Equipnent Less: Accumulated depreciation $ 240,000 1,005,000 1,740,000 145,800 170,000 755,000 1,370,000 115,000 234,000 775,00e 1,048,eee 90,000 1,700,000 (75e,00e) 1,700,000 (S5e,000)…
Safari 4:22 PM Tue Jan 30 < HW Set 1 (Ch 2 and 3) Template Calibri (Body) fx Enter text or formula here A 1 E 2.16 2 Information for Montgomery, Inc. 3 4 5 6 7 Cash 8 Accounts Receivable 9 Inventory 10 PP&E, net 11 Goodwill NOPAT for 2020 12 Other operating assets 13 A/P 14 Accrued Expenses and other 15 Unearned revenues 16 Long-term debt 17 Common stock 18 19 20 a. 21 NOA for 2019 22 NOA for 2020 23 24 b. 25 26 27 28 29 30 31 32 33 34 35 Retained earnings 2020 FCF E 2.16 E 2.17 E 3.15 11 B HE E 3.18 Home Insert $ BIU C 3,150 2019 3,590 5,650 10,240 21,840 13,160 3,450 10,400 10,350 3,120 7,680 18,840 7,540 + Draw Page Layout ABC 2020 4,260 8,340 11,460 26,110 14,310 4,720 13,310 13,740 4,770 8,350 18,930 10,100 ch LL F Formulas Data G Review View General H < E < H: AH L O M Σ ☎: 50% |||| O
w/ ル 16 AaBbCcDc AaBbCcDc AABBCC AABBCCC A 1 Normal 1 No Spac... Heading 1 Heading 2 , 三 Paragraph Styles The appropriate ratios for the company. 2018 2017 current ratio = 4.26470 4.82510 acid test ratio = 1.18602 1.43199 %3D days sales uncollected = net profit margin = 8.29954 1.87842 1.26872 gross profit margin debt to equity ratio = = 9.78681 8.15187 0.38634 0.38720 debt ratio = 0.62956 0.63186 equity ratio = 0.37044 0.36814 interest coverage ratio 6.50636 The Plan The Company is considering opening a new store. The directors of the company have contracted op nou an assessment of the financial performance of the company over the two (2) year period 2017 to 2018. Required: 1. Write a report to the Board of Directors on the performance of the company over the two years, highlighting areas of concern. 2. Would you recommend the opening of a new store? X. Ed 27° acer
CP 13–5The following data are taken from the records of Cronkite Corp.:2019$2,5201,890630510$ 1202018$1,440960480430$ 50SalesCost of goods soldGross profitOther expensesNet incomeRequired: Perform horizontal analysis on the above date and interpretyour results
Camaro GTO Torino Cash $ 2,350 $ 220 $ 1,200 Short-term investments 0 0 700 Current receivables 250 500 450 Inventory 2,150 2,000 3,000 Prepaid expenses 300 600 900 Total current assets $ 5,050 $ 3,320 $ 6,250 Current liabilities $ 2,200 $ 1,310 $ 3,500 Compute the acid-test ratio for each of the separate cases above.
Tableau Dashboard Activity 12-1 Use Conservative Versus Aggressive Accounting Estimates Review the Tableau visualization, and then answer the questions that follow. Sales Revenue Cost of Goods Sold Depreciation Exp Bad Debt Exp Warranty Exp Income Statement Net Income $80,000 $0 $50,000 $100,000 $150,000 $200,000 Balance Sheet Cash Accounts Receivable Allowance for Uncol Accts Inventory Equipment Accum Depr Total Assets Accounts Payable Warranty Liab Common Stock Retained Earnings Total Liab and Equities Operating Cash Flows Investing Cash Flows Financing Cash Flows $275,000 Uncollectible Accounts Estimate Ⓒ Before Adjustment 5% of Accounts Receivable 15% of Accounts Receivable Lower of Cost or NRV Estimate Ⓒ Before Adjustment Ⓒ $4,000 NRV Below Cost $12,000 NRV Below Cost Depreciation Estimate Before Adjustment 6 Years 12 Years Warranty Estimate Before Adjustment 4% of Sales Revenue 12% of Sales Revenue Risk Analysis Current Ratio Debt-to-Equity Rat.. 10.3 5.8% Profitability Analysis…
TB SA Qu. 16-59 (Static) Complete: Complete: Current Assets Cash Accounts receivable Prepaid rent Merchandise inventory Total current assets $ Amount $ $ $ 12,000 9,000 5,000 28,000 Round to Nearest Hundredth Percent % % % % 100 %

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