Problem 17-3A Analysis of working capital LO4 Halifax Fisheries Inc. began the month of March with $769,000 of current assets, a current ratio of 2.5 to 1, and a quick ratio of 11 to 1 During the month, It completed the following transactions: Mar. 6 Bought $86,900 of merchandise on account. (The company uses a perpetual inventory system.) 11 Sold merchandise that cost 71,800 for $122,500. 15 Collected a 30,900 account receivable. 17 Paid a $32,900 account payable. 19 Hrote off $14,900 bad debt against Allowance for Doubtful Accounts. 24 Declared a $2.20 per share cash dividend on the 41,900 outstanding common shares. 28 Paid the dividend declared on March 24. 29 Borrowed $94,500 by giving the bank a 30-day, 18% note. 30 Borrowed $119,000 by signing a long-term secured note. 31 Used the $213,500 proceeds of the notes to buy additional machinery. Required: Prepare a schedule showing Halifax Fisheries Inc.'s current ratio, quick ratio, and working capital after each of the transactions. (Round ratios to 2 decimal places and other final answers to nearest whole dollar.) Transaction Beginning Mar 6 Bal Mar 11 Bal Current Assets Quick Assets Current Liabilities Current Ratio 1 1 Quick Ratio 1 - C 1 Working Capital

Problem 17-3A Analysis of working capital LO4 Halifax Fisheries Inc. began the month of March with $769,000 of current assets, a current ratio of 2.5 to 1, and a quick ratio of 11 to 1 During the month, It completed the following transactions: Mar. 6 Bought $86,900 of merchandise on account. (The company uses a perpetual inventory system.) 11 Sold merchandise that cost 71,800 for $122,500. 15 Collected a 30,900 account receivable. 17 Paid a $32,900 account payable. 19 Hrote off $14,900 bad debt against Allowance for Doubtful Accounts. 24 Declared a $2.20 per share cash dividend on the 41,900 outstanding common shares. 28 Paid the dividend declared on March 24. 29 Borrowed $94,500 by giving the bank a 30-day, 18% note. 30 Borrowed $119,000 by signing a long-term secured note. 31 Used the $213,500 proceeds of the notes to buy additional machinery. Required: Prepare a schedule showing Halifax Fisheries Inc.'s current ratio, quick ratio, and working capital after each of the transactions. (Round ratios to 2 decimal places and other final answers to nearest whole dollar.) Transaction Beginning Mar 6 Bal Mar 11 Bal Current Assets Quick Assets Current Liabilities Current Ratio 1 1 Quick Ratio 1 - C 1 Working Capital

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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Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

Required:
Prepare a schedule showing Halifax Fisheries Inc.'s current ratio, quick ratio, and working capital after each of the transactions (Round
ratios to 2 decimal places and other final answers to nearest whole dollar)
Transaction
Beginning
Mar 6
Bal
Mar 11
Bal
Mar 15
Bal
Mar 17
Bal
Mar 19
Bal
Mar 24.
Bal
Mar 28
Bal
Mar 29:
Bal
Mar 30
Bal
8
Current
Assets
Quick
Assets
Current
Liabilities
Current Ratio
1
1
1
1
1
1
Quick Ratio
9
1
1
1
Working
Capital

Problem 17-3A Analysis of working capital LO4
Hallfax Fisheries Inc. began the month of March with $769,000 of current assets, a current ratio of 2.5 to 1, and a quick ratio of 11 to 1
During the month, It completed the following transactions:
Mar. 6 Bought $86,900 of merchandise on account. (The company uses a perpetual inventory system.)
11 Sold merchandise that cost 71,800 for $122,500.
15 Collected a 30,900 account receivable.
17 Paid a $32,900 account payable.
19 Hrote off $14,900 bad debt against Allowance for Doubtful Accounts.
24 Declared a $2.20 per share cash dividend on the 41,900 outstanding common shares.
28 Paid the dividend declared on March 24.
29 Borrowed $94,500 by giving the bank a 30-day, 18% note.
30 Borrowed $119,000 by signing a long-term secured note.
31 Used the $213,500 proceeds of the notes to buy additional machinery.
Required:
Prepare a schedule showing Halifax Fisheries Inc.'s current ratio, quick ratio, and working capital after each of the transactions. (Round
ratios to 2 decimal places and other final answers to nearest whole dollar.)
Transaction
Beginning
Mar 6
Bal
Mar 11
Bal
Current
Assets
Quick
Assets
Current
Liabilities
Current Ratio
1
1
Quick Ratio
1
-
1
Working
Capital

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