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Mei-kwei International's common stock sold for 9 totalling $4,400 and a common stock dividend o financial statements: Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities

Mei-kwei International's common stock sold for 9 totalling $4,400 and a common stock dividend o financial statements: Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities

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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Mei-kwei International's common stock sold for $3.55 per share at the end of this year. The company paid preferred stock dividends totalling $4,400 and a common stock dividend of $0.63 per share this year. It also provided the following data excerpts from this year's financial statements: Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities Preferred stock Common stock, $1 par value Total stockholders' equity Total liabilities and stockholders' equity Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net income This Year $ 750,000 $ 440,000 $ 310,000 $ 162,000 $ $ Working capital Current ratio 9,000 93,000 Ending Balance $ $ $ $ $ $ $ $ $ $ 31,000 64,000 Beginning Balance $ 490,000 $ 32, 200 $ 53,700 64,000 $ $ 149,900 $ 506,000 49,500 126,000 42,000 84,000 59, 200 154,200 490,000 63,000 $ 140,000 $ 42,000 $ 84,000 $ 350,000 $ 380,000 $ 506,000 Required: What is the amount of working capital and the current ratio at the end of this year? (Round your current ratio answer to 2 decimal places.)
Transcribed Image Text:Mei-kwei International's common stock sold for $3.55 per share at the end of this year. The company paid preferred stock dividends totalling $4,400 and a common stock dividend of $0.63 per share this year. It also provided the following data excerpts from this year's financial statements: Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities Preferred stock Common stock, $1 par value Total stockholders' equity Total liabilities and stockholders' equity Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net income This Year $ 750,000 $ 440,000 $ 310,000 $ 162,000 $ $ Working capital Current ratio 9,000 93,000 Ending Balance $ $ $ $ $ $ $ $ $ $ 31,000 64,000 Beginning Balance $ 490,000 $ 32, 200 $ 53,700 64,000 $ $ 149,900 $ 506,000 49,500 126,000 42,000 84,000 59, 200 154,200 490,000 63,000 $ 140,000 $ 42,000 $ 84,000 $ 350,000 $ 380,000 $ 506,000 Required: What is the amount of working capital and the current ratio at the end of this year? (Round your current ratio answer to 2 decimal places.)
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