Prior Year Current Year Prior Year Current Y $100,000 $120,000 Assets: ods Sold 50,000 60,000 Cash $90,000 $110,00 it 50,000 60,000 Accounts Receivable 20,000 30,00 Inventory 35,000 40,00 nse 5,000 5,500 Short-Term Investments 15,000 20,00 on Expense 2,500 3,600 Total Current Asstes 160,000 200,00 5,400 2,500 3,000 40,000 Equipment Total Assets 50,00 pense ense 1,500 $200,000 $250,00 Income 38,000 43,000 Liabilities: Accounts Payable $ 60,000 $ 75,00 pense x Expense 3,000 2,000 Unearned Revenue 10,000 25,00 5,000 6,000 Total Current Liabilities 70,000 100,00 $ 30,000 $ 35,000 Notes Payable 40,000 50,00 Total Liabilities 110,000 150,00
Prior Year Current Year Prior Year Current Y $100,000 $120,000 Assets: ods Sold 50,000 60,000 Cash $90,000 $110,00 it 50,000 60,000 Accounts Receivable 20,000 30,00 Inventory 35,000 40,00 nse 5,000 5,500 Short-Term Investments 15,000 20,00 on Expense 2,500 3,600 Total Current Asstes 160,000 200,00 5,400 2,500 3,000 40,000 Equipment Total Assets 50,00 pense ense 1,500 $200,000 $250,00 Income 38,000 43,000 Liabilities: Accounts Payable $ 60,000 $ 75,00 pense x Expense 3,000 2,000 Unearned Revenue 10,000 25,00 5,000 6,000 Total Current Liabilities 70,000 100,00 $ 30,000 $ 35,000 Notes Payable 40,000 50,00 Total Liabilities 110,000 150,00
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
Related questions
Question
Compute the following ratio analysi
- Current Ratio
- Acid Test Ratio
Write your interpretation after the computation.
Transcribed Image Text:BARRY'S SUPERSTORE
BARRY'S SUPERSTORE
Comparative Year-End Income Statements
Comparative Year-End Balance Sheets
Prior Year
Current Year
Prior Year
Current Year
Net Sales
$100,000
$120,000
Assets:
Cost of Goods Sold
50,000
60,000
Cash
$90,000
$110,000
Gross Profit
50,000
60,000
Accounts Receivable
20,000
30,000
Inventory
35,000
40,000
Rent Expense
5,000
5,500
Short-Term Investments
15,000
20,000
Total Current Asstes
200,000
Depreciation Expense
Salaries Expense
2,500
3,600
160,000
3,000
5,400
Equipment
40,000
50,000
Utility Expense
1,500
2,500
Total Assets
$200,000
$250,000
Operating Income
38,000
43,000
Liabilities:
Accounts Payable
$ 60,000
$ 75,000
Interest Expense
3,000
2,000
Unearned Revenue
10,000
25,000
Income Tax Expense
5,000
6,000
Total Current Liabilities
70,000
100,000
Net Income
$ 30,000
$ 35,000
Notes Payable
40,000
50,000
Total Liabilities
110,000
150,000
Stockholder Equity
Common Stock
75,000
80,000
Ending Retained Earnings
Total Stockholder Equity
15,000
20,000
90,000
100,000
Total Liabilities and Stockholder Equity
$200,000
$250,000
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