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Houle Furniture Company has asked you to determine whether the company's ability to pay its current liabilities and long-term debts improved or deteriorated during 2021. (Click the icon to view the financial statement data.) Read the requirement. Calculate the following ratios for 2021 and 2020. Round your answers to two decimal places. a. Net working capital Select the formula and then enter the amounts to calculate the working capital for 2021 and 2020. 2021 2020 Net working capital Data table Requirement 1. To answer this question, calculate the following ratios for 2021 and 2020. Round your answers to two decimal places. a. Net working capital b. Current ratio c. Quick (acid-test) ratio d. Debt ratio e. Times-interest-earned ratio Cash Short-term investments Net receivables Inventory 2021 2020 $ 23,000 $ 76,000 34,000 19,000 118,000 136,000 243,000 272,000 Prepaid expenses 17,000 12,000 Total assots 590,000 520,000 Total current liabilities 237,000 252,000 Long-term debt 107,000 194,000 Income from operations 194,000 130,000 Print Done Interest expense 42,000 40,000 Summarize the results of your analysis. Print Done

Houle Furniture Company has asked you to determine whether the company's ability to pay its current liabilities and long-term debts improved or deteriorated during 2021. (Click the icon to view the financial statement data.) Read the requirement. Calculate the following ratios for 2021 and 2020. Round your answers to two decimal places. a. Net working capital Select the formula and then enter the amounts to calculate the working capital for 2021 and 2020. 2021 2020 Net working capital Data table Requirement 1. To answer this question, calculate the following ratios for 2021 and 2020. Round your answers to two decimal places. a. Net working capital b. Current ratio c. Quick (acid-test) ratio d. Debt ratio e. Times-interest-earned ratio Cash Short-term investments Net receivables Inventory 2021 2020 $ 23,000 $ 76,000 34,000 19,000 118,000 136,000 243,000 272,000 Prepaid expenses 17,000 12,000 Total assots 590,000 520,000 Total current liabilities 237,000 252,000 Long-term debt 107,000 194,000 Income from operations 194,000 130,000 Print Done Interest expense 42,000 40,000 Summarize the results of your analysis. Print Done

FINANCIAL ACCOUNTING
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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Houle Furniture Company has asked you to determine whether the company's ability to pay its current liabilities and long-term debts improved or deteriorated during 2021. (Click the icon to view the financial statement data.) Read the requirement. Calculate the following ratios for 2021 and 2020. Round your answers to two decimal places. a. Net working capital Select the formula and then enter the amounts to calculate the working capital for 2021 and 2020. 2021 2020 Net working capital Data table Requirement 1. To answer this question, calculate the following ratios for 2021 and 2020. Round your answers to two decimal places. a. Net working capital b. Current ratio c. Quick (acid-test) ratio d. Debt ratio e. Times-interest-earned ratio Cash Short-term investments Net receivables Inventory 2021 2020 $ 23,000 $ 76,000 34,000 19,000 118,000 136,000 243,000 272,000 Prepaid expenses 17,000 12,000 Total assots 590,000 520,000 Total current liabilities 237,000 252,000 Long-term debt 107,000 194,000 Income from operations 194,000 130,000 Print Done Interest expense 42,000 40,000 Summarize the results of your analysis. Print Done
Transcribed Image Text:Houle Furniture Company has asked you to determine whether the company's ability to pay its current liabilities and long-term debts improved or deteriorated during 2021. (Click the icon to view the financial statement data.) Read the requirement. Calculate the following ratios for 2021 and 2020. Round your answers to two decimal places. a. Net working capital Select the formula and then enter the amounts to calculate the working capital for 2021 and 2020. 2021 2020 Net working capital Data table Requirement 1. To answer this question, calculate the following ratios for 2021 and 2020. Round your answers to two decimal places. a. Net working capital b. Current ratio c. Quick (acid-test) ratio d. Debt ratio e. Times-interest-earned ratio Cash Short-term investments Net receivables Inventory 2021 2020 $ 23,000 $ 76,000 34,000 19,000 118,000 136,000 243,000 272,000 Prepaid expenses 17,000 12,000 Total assots 590,000 520,000 Total current liabilities 237,000 252,000 Long-term debt 107,000 194,000 Income from operations 194,000 130,000 Print Done Interest expense 42,000 40,000 Summarize the results of your analysis. Print Done
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