Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Practice Pack
Given the financial statement shown here as Table P3.3 calculate the:
(a) Current ratio
(b) Quick ratio
Please view the image for the table P3.3
Transcribed Image Text:REVIEW QUESTIONS AND EXERCISES
67
TABLE P3.3 Balance Sheet, Peachtree Construction (31 December 2016)
Assets
Current assets
Cash
$243,146
Accounts receivable
Trade accounts
201,573
42,147
243,720
Retainage
Total accounts receivable
Material inventory
Work in process (costs and estimated earnings in excess of
billings)
Prepaid expenses
1,873
76,142
6,148
782
571,811
Other current assets
Total current assets
Fixed assets
Machinery and equipment
542,173
49,214
5,812
597,199
291,314
305,885
Cars and trucks
Furniture and fixtures
Total depreciable assets
Less accumulated depreciation
Net fixed assets
Total assets
877,696
Liabilities
Current liabilities
Accounts payable
Retainage payable
Notes payable
Accrued liabilities
Work in process (billings in excess of costs and estimated
earnings)
Other current liabilities
236,144
21,312
84,211
15,827
5,163
1,421
Total current liabilities
364,078
Long-term liabilities
Total liabilities
138,481
502,559
Net worth
Capital stock
Retained earnings
15,000
360,137
375,137
$877,696
Total net worth
Total liabilities and net worth
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