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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PE 9-4B Analysis of receivables method OBJ. 4 At the end of the current year, Accounts Receivable has a balance of $4,770,000, Allow- ance for Doubtful Accounts has a debit balance of $17,230, and sales for the year total $63,800,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $380,000. Determine (a) the amount of the adjusting entry for uncollectible accounts; (b) the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense; and (c) the net realizable value of accounts receivable.
Dec. 31 , 20Υ2 Dec. 31, 20Y1 Accounts receivable $30,000 $29,200 Inventory 75,800 76,500 Accounts payable 28,000 26,300 Dividends payable 21,000 23,000 Adjust net income of $102,600 for changes in operating assets and Net cash provided by operating activities?
Exercise 4-20 (Algo) Computing and analyzing the acid-test ratio LO A1 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 Required: Compute the acid-test ratio for each of the separate cases above. Which company is in the best position to meet short-term obligations?
Q. 13
%24 %24 %24 Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $605,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and sales for the year total $2,720,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $28,600. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable.
CHAPTE A 5 ļ ACCOUNTING FOR MERCHANDISING ACTIVITIES 263 Dalck Look GM's Cur nt Pesition A balance sheet of IBM contained the followin, items among others. (Dollar amounts are stated in millions, Cash.... investment in marketable securities (current asset) 770 Notes & accounts receivable (net).. 6.197 ... Other current receivables ... 12,757 inventories. 1,092 Prepaid expenses and other current assets.. 8,6-45 Plant & other property (net of depreciation). 1.559 Accounts paysbie 2i,082 Loans payable (short term) Tares payable.... 2,627 ... 1.629 Otner current liabilities 2.534 6.587 Long-term debt.. Stockhoiders' equity.. 3,858 38,263 a From the above information, compute the amount of IBM's current assets and the amount of its curren: lhabilities. ISTRUCTIONS b How much wori.ing capital does IBM have? c Coimpute the current ratio to the nearest tenth of a percent.
%24 %24 Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $735,000; Allowance for Doubtful Accounts has a debit balance of $6,500; and sales for the year total $3,310,000. Bad debt expense is estimated at 1/4 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful ACcounts Bad Debt Expense c. Determine the net realizable value of accounts receivable.
HI, may i know why didn't record cost , $5000?
9:17 O A 51% Activity 1.3 Identify Me T-accounts State whether the following T-accounts have normal balance or not. 1. 2. CASH ACCOUNTS RECEIVABLE 12 345,000.00 10,800.00 10,000.00 3,000.00 15,000.00 8,000.00 1,000.00 13,000.00 15,000.00 20,000.00 2,000.00 6,000.00 379,000.00 11,800,00 367,200.00 4. ACCUM. DEPRN -BLDG 125.000.00 125,000.00 LAND 250,000,00 250,000.00 6. SERVICE REVENUE 5. 34,500.00 30,000.00 1,000.00 CRUZ, CAPITAL 500,000.00 500,000.00 18,000.00 83,500.00 7. 8. RENTAL EXPENSES SALARIES EXPENSE 5.000.00 6,000.00 10,000.00 1,000.00 1.000.00 9,000.00 10. INTEREST EXPENSE TAXES AND LICENSES 2,000.00 5,000.00 2,300.00 3,000.00 2,300.00
183 Exercise 5-7 The beginning and ending balances in each of the halance sheet accounts of the Mexico Company are as follows: Dec. 31, 2020 PI00,000 Dee. 31, 2019 Cash P260,000 Accounts reccivable Inventory Prepaid insurance Total current assets 180,000 360,000 400,000 50.000 P890,000 P1,200,000 460,000 30,000 P950,000 P1,500,000 Land Plant & equipment Accumulated depreciation 1,000,000 1.400.000 (400,000) P1.800,000 (500,000) P2,400,000 Total non-current assets Total assets P2,690,000 P3,350,000 Accounts payable Accrued operating expenses Interest payable Income taxes payabie P 300,000 200,000 P 260.000 132,000 20,000 122,000 P 642,000 30,000 150,000 P 572,000 700,000 Total current liabilities Bonds payable Common stock Retained earnings 600,000 800,000 648,000 1,100,000 978,000 Total liabilities & equity P2,690,000 P3,350,000 The forecast income statement for the Mexico Company for 2020 is resented below: Sales P2,500,000 Cost of sales Gross profit Operating expenses Income before…
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.
Exercise 9-6A (Algo) Working capital and current ratio LO 09-02 On June 30, Year 3, Walton Company's total current assets were $500,500 and its total current liabilities were $279,500. On July 1, Year 3, Walton issued a short-term note to a bank for $41,800 cash. Required a. Compute Walton's working capital before and after issuing the note. b. Compute Walton's current ratio before and after issuing the note. Note: Round your answers to 2 decimal places. a. Working capital b. Current ratio Before the transaction After the transaction

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