Problem 11-15 (Algo) Review problem-understanding liquidity measures LO 11-1 Assume that the current ratio for Arch Company is 2.5, its acid-test ratio is 2.0, and its working capital is $330.000. Answer each of the following questions independently, always referring to the original information. Required: a. How much does the firm have in current liabilities?

Problem 11-15 (Algo) Review problem-understanding liquidity measures LO 11-1 Assume that the current ratio for Arch Company is 2.5, its acid-test ratio is 2.0, and its working capital is $330.000. Answer each of the following questions independently, always referring to the original information. Required: a. How much does the firm have in current liabilities?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

(1) Compute debt and equity ratio for the current year and one year ago. (2) Compute debt-to-equity ratio for the current year and one year ago. (3)Compute times interest eamed for the current year and one year ago. Please avoid solutions in an image format thank you
Prepare a classied balanced sheet in good form 1. Common Stock 2. Discountedd on Bonds Payable 3. Treasury Stock (at cost) 4. Notes Payable (short-term) 5. Raw Materials 6. Prefered Stock Investments (long-term) 7. Unearned Rent Revenue 8. Work in Process. 9. Copyrights 10. Buildings 11. Notes Recievable (short-term). 12. Cash. 13. Salaries and Wages Payable. 14. Accummlated Depreciation--Buildings 15. Restricted Cash for Plant Expansion 16. Land Held for Future Plant Site 17. Allowance for Doubtful Accounts 18. Retained Earnings 19. Paid-in capitial in Excess of Par -Common Stock 20. Unearned Subscriptions Revenue 21. Receivables--Officers (due in one year) 22. Inventory (finished goods) 23. Accounts Receivable 24. Bonds Payable (due in 4 years) 25. Noncontrolling Interest
The Quick ratio is measured by (Cash + Receivables) / Current liabilities. Assume this ratio is currently 80% (or 0.8:1) and that the cash balance remains positive at all times. State the effect the following event occurring on the reporting date would have on this ratio. EVENT: Recognising a gain from the cash sale of a non-current asset ✓ [Select] Increase No change Decrease
What is the modified internal rate of return for the following cashflow? CFO ($8,350,000) CF₁ 1 $4,200,000 i = 12% CF 2 $4,200,000 CF 3 ($2,850,000) CFA 4 $4,800,000 CF5 $3,400,000
M7 Q1
RATIO ANALYSIS. Debt Ratio Activity 6 · Understand the information provided by the debt ratio. · Identify the expected range and whether an increasing or decreasing trend is preferred. Purpose: The debt ratio compares total liabilities to total assets. This ratio measures the proportion of assets financed by debt. It is a measure of long-term solvency. Total liabilities DEBT RATI0 = Total assets JOHNSON & CITIGROUP 12/31/99 HEWLETT- PACKARD 10/3 1/99 JOHNSON 1/03/99 WAL-MART 1/31/99 ($ in 000s) Assets $716,937,000 $35,297,000 $26,211,000 $49,996,000 Liabilities 667,251,000 17,002,000 12,621.000 28,884,000 Stockholders' Equity $ 49,686,000 $18,295,000 $13,590,000 $21,112,000 Source: Disclosure, Inc, Compact D/SEC, 2000. 1. For each-company listed above, compute the debt ratio. Record your results below. Debt ratio: 0.93 2. The debt ratios computed above are primarily in the ranġe (less than 0,40 / 0.40 through 0.70 / over 0.70): 3. % of Wal-Mart's assets are financed by debt. 4.…
Exercise 8-17A Calculate and analyze liquidity ratios (LO8-6) Selected financial data regarding current assets and current liabilities for Queen's Line, a competitor in the cruise line industry, is provided: ($ in millions) Current assets: Cash and cash equivalents Current investments Net receivables. Inventory Other current assets Total current assets Current liabilities: Accounts payable Short-term debt Other current liabilities Total current liabilities Current Ratio $ 351 76 204 114 134 $879 Required: 1. Calculate the current ratio and the acid-test ratio for Queen's Line. (Enter your answers in millions, not in dollars. For example, $5,500,000 should be $ 5.5.) Acid-Test Ratio $1,190 689 924 $2,803
What is the modified internal rate of return for the following cashflow? CF1 H CFo ($7,600,000) 23.14% 13.42% 19.84% 17.02% $2,800,000 i = 13% CF₂ $2,800,000 CF 3 ($1,700,000) CFA $4,550,000 CF5 $4,200,000