Mayfield Corporation has provided the following financial data: Balance Sheet Assets Current assets: Cash $ 228,000 Accounts receivable, net 241,000 Inventory 204,000 Prepaid expenses 11,000 Total current assets 684,000 Plant and equipment, net 670,000 Total assets $ 1,354,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 162,000 Accrued liabilities 53,000 Notes payable, short term 46,000 Total current liabilities 261,000 Bonds payable 102,000 Total liabilities 363,000 Stockholders' equity: Common stock, $4 par value 362,000 Additional paid-in capital 81,000 Retained earnings 548,000 Total stockholders' equity 991,000 Total liabilities & stockholders' equity $ 1,354,000 The company’s acid-test (quick) ratio is closest to:

Mayfield Corporation has provided the following financial data: Balance Sheet Assets Current assets: Cash $ 228,000 Accounts receivable, net 241,000 Inventory 204,000 Prepaid expenses 11,000 Total current assets 684,000 Plant and equipment, net 670,000 Total assets $ 1,354,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 162,000 Accrued liabilities 53,000 Notes payable, short term 46,000 Total current liabilities 261,000 Bonds payable 102,000 Total liabilities 363,000 Stockholders' equity: Common stock, $4 par value 362,000 Additional paid-in capital 81,000 Retained earnings 548,000 Total stockholders' equity 991,000 Total liabilities & stockholders' equity $ 1,354,000 The company’s acid-test (quick) ratio is closest to:

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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Klynveld Companys balance sheet shows total liabilities of 94,000,000, total stockholders equity of 75,000,000, and total assets of 169,000,000. Required: Note: Round answers to two decimal places. 1. Calculate the debt ratio. 2. Calculate the debt-to-equity ratio.
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: Note: Round answers to two decimal places. 1. Calculate the times-interest-earned ratio. 2. Calculate the debt ratio. 3. Calculate the debt-to-equity ratio.
Consider the following financial data for Terry Enterprises: Balance Sheet as of December 31, 2018 Cash $ 86,000 Accounts payable $ 15,500 Accts. receivable 91,500 Notes payable 93,500 Inventories 65,500 Accruals 19,500 Total current assets $ 243,000 Total current liabilities $ 128,500 Long-term debt 162,500 Net plant & equip. 419,500 Common equity 371,500 Total assets $ 662,500 Total liab. & equity $ 662,500 Statement of Earnings for 2018 Industry Average Ratios Net sales $ 642,500 Current ratio 2.2× Cost of goods sold 482,000 Quick ratio 1.7× Gross profit $ 160,500 Days sales outstanding 44 days Operating expenses 119,500 Inventory turnover 6.7× EBIT $ 41,000 Total asset turnover 0.6× Interest expense 14,500 Net profit margin 7.2% Pre-tax earnings $ 26,500…
Consider the following financial data for Nguyen Industries: Statement of Financial Position as of December 31, 2018 Cash $ 232,500 Accounts payable $ 86,500 Accts. receivable 357,500 Short-term bank note 254,000 Inventories 150,500 Accrued wages & taxes 80,000 Total current assets $ 740,500 Total current liabilities $ 420,500 Long-term debt 566,000 Net fixed assets 774,500 Common equity 528,500 Total assets $ 1,515,000 Total liab. & equity $ 1,515,000 Profit & Loss Statement for 2018 Industry Average Ratios Net sales $ 1,894,000 Current ratio 1.4× Cost of goods sold 1,382,500 Quick ratio 1.0× Gross profit $ 511,500 Days sales outstanding 63 days Operating expenses 373,000 Inventory turnover 9.5× EBIT $ 138,500 Total asset turnover 1.5× Interest expense 64,000 Net…
Presented below are summary financial data from Pompeo's annual report: Amounts in millions Balance sheet Cash and cash equivalents $5,876 Marketable securities 58,776 Accounts receivable (net) 30,443 Total current assets 127,036 Total assets |400,004 Current liabilities 113,172 Long-term debt 21,837 Shareholders' equity 204,834 Income Statement Interest expense 1,167 Net income before taxes 42,021 Calculate the following ratios: (round to two decimal places) a. Times-interest-earned ratio b. Quick ratio C. Current ratio
Consider the following company’s balance sheet and income statement Return on assets. Return on equity.
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Baker Inc has the following balance sheet and income statement data: Cash $14,000 Accounts payable $42,000 Receivables 70,000 Other current liabilities 28,000 Inventories 280,000 Total CL $70,000 Total CA $364,000 Long-term debt 140,000 Net fixed assets 126,000 Common equity 280,000 Total assets $490,000 Total liab. and equity $490,000 Sales $280,000 Net income 21,000 The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.15, without affecting either sales or net income. Assuming that inventories are sold off and not replaced to get the current ratio to the target level, and that the funds generated are used to buy back common stock at book value, by how much would the ROE change? Do not round your intermediate calculations.
Jordan Inc. has the following balance sheet and income statement data: Cash $ 14,000 Accounts payable $ 42,000 Receivables 70,000 Other current liabilities 28,000 Inventories 280,000 Total CL $ 70,000 Total CA $ 364,000 Long-term debt 140,000 Net fixed assets 126,000 Common equity 280,000 Total assets $ 490,000 Total liab. and equity $ 490,000 Sales $ 280,000 Net income $ 21,000 The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.15, without affecting either sales or net income. Assuming that inventories are sold off and not replaced to get the current ratio to the target level, and that the funds generated are used to buy back common stock at book value, by how much would the ROE change? Do not round your intermediate calculations. a. 9.84 p.p. b. 2.34 p.p. c. 13.95 p.p. d. 31.58…
Ratio AnalysisPresented below are summary financial data from Pompeo’s annual report: Amounts in millions Balance Sheet Cash and Cash Equivalents $1,865 Marketable Securities 19,100 Accounts Receivable (net) 9,367 Total Current Assets 39,088 Total Assets 123,078 Current Liabilities 39,255 Long-Term Debt 7,279 Shareholders’ Equity 68,278 Income Statement Interest Expense 375 Net Income Before Taxes 14,007 Calculate the following ratios:(Round to 2 decimal points) a. Times-interest-earned ratio Answer b. Quick ratio Answer c. Current ratio Answer PreviousSave AnswersNext
The financial statements of Neale Corporation include the following information: Current Year Prior Year Balance sheet: Cash $ 24,000 $ 25,300 Short-term investments 36,000 29,600 Accounts receivable, net 76,200 83,250 Inventory 90,000 81,950 Prepaid expenses 19,800 9,900 Total current assets 246,000 230,000 Total current liabilities 140,000 115,560 Income statement: Net credit sales $ 645,000 Cost of goods sold 467,000…
Consider the following financial data for Smith Corp.: Balance Sheet as of December 31, 2019 Cash $ 195,000 Accounts payable $ 94,000 Receivables 185,500 Short-term bank note 119,500 Inventories 214,500 Accruals 71,000 Total current assets $ 595,000 Total current liabilities $ 284,500 Long-term debt 462,500 Net plant & equip. 621,500 Common equity 469,500 Total assets $ 1,216,500 Total liab. & equity $ 1,216,500 Profit & Loss Statement for 2019 Industry Average Ratios Net sales $ 1,265,000 Current ratio 1.9× Cost of sales 986,500 Quick ratio 1.2× Gross profit $ 278,500 Days sales outstanding 64 days Operating expenses 166,500 Inventory turnover 3.3× EBIT $ 112,000 Total asset turnover 0.7× Interest expense 32,000 Net profit margin 9.1% Pre-tax income $ 80,000…

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Balance Sheet
Assets
Current assets:
Cash	$	228,000
Accounts receivable, net		241,000
Inventory		204,000
Prepaid expenses		11,000
Total current assets		684,000
Plant and equipment, net		670,000
Total assets	$	1,354,000

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	162,000
Accrued liabilities		53,000
Notes payable, short term		46,000
Total current liabilities		261,000
Bonds payable		102,000
Total liabilities		363,000
Stockholders' equity:
Common stock, $4 par value		362,000
Additional paid-in capital		81,000
Retained earnings		548,000
Total stockholders' equity		991,000
Total liabilities & stockholders' equity	$	1,354,000