Problem 3-1 Calculating Liquidity Ratios [LO 2] SDJ, Incorporated, has net working capital of $1,810, current liabilities of $5,650, and inventory of $1,275. E a. What is the current ratio? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 3 b. What is the quick ratio? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 3 a. Current ratio b. Quick ratio times times

Problem 3-1 Calculating Liquidity Ratios [LO 2] SDJ, Incorporated, has net working capital of $1,810, current liabilities of $5,650, and inventory of $1,275. E a. What is the current ratio? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 3 b. What is the quick ratio? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 3 a. Current ratio b. Quick ratio times times

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 33CE: Liquidity Ratios NWAs financial statements contain the following information: Note: Round answers to...

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Problem 3-1 Calculating Liquidity Ratios [LO2] SDJ, Inc., has net working capital of $2,930, current liabilities of $4,070, and inventory of $3,770. a. What is the current ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) b. What is the quick ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
pter 4 Problem Solving.pdf Open with Google Docs Problem 4-10 page 112 RATIO CALCULATIONS Assume the following relationships for the Brauer Corp Sales total assets Retum on assets ROA) Return onequity (ROE) Calculate Brauer's puofit margin and debt iratio. Solation
Problem 11-11 (Algo) Review problem—understanding liquidity measures LO 1 Assume that the current ratio for Arch Company is 2.5, its acid-test ratio is 1.5, and its working capital is $390,000. Answer each of the following questions independently,always referring to the original information.Required: How much does the firm have in current liabilities? (Do not round intermediate calculations.) If the only current assets shown on the balance sheet for Arch Company are Cash, Accounts Receivable, and Merchandise Inventory, how much does the firm have in Merchandise Inventory? (Do not round intermediate calculations.) If the firm collects an account receivable of $117,000, what will its new current ratio and working capital be? (Round "Current ratio" to 1 decimal place.) If the firm pays an account payable of $53,000, what will its new current ratio and working capital be? (Do not round intermediate calculations. Round "Current ratio" to 1 decimal place.) If the firm sells inventory that…
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? Note: Do not round intermediate calculations.
Problem 11-11 (Algo) Review problem-understanding liquidity measures LO 1 Assume that the current ratio for Arch Company is 2.5, its acid-test ratio is 1.5, and its working capital is $390,000. Answer each of the following questions independently, always referring to the original information. Required: a. How much does the firm have in current liabilities? (Do not round intermediate calculations.) b. If the only current assets shown on the balance sheet for Arch Company are Cash, Accounts Receivable, and Merchandise Inventory, how much does the firm have in Merchandise Inventory? (Do not round intermediate calculations.) c. If the firm collects an account receivable of $117,000, what will its new current ratio and working capital be? (Round "Current ratio" to 1 decimal place.) d. If the firm pays an account payable of $53,000, what will its new current ratio and working capital be? (Do not round intermediate calculations. Round "Current ratio" to 1 decimal place.) e. If the firm sells…
Problem 11-15 (Algo) Review problem-understanding liquidity measures LO 11-1 Assume that the current ratio for Arch Company is 3.0, its acid-test ratio is 1.5, and its working capital is $360,000. Answer each of the following questions independently, always referring to the original information. Required: a. How much does the firm have in current liabilities? Note: Do not round intermediate calculations. b. If the only current assets shown on the balance sheet for Arch Company are Cash, Accounts Receivable, and Merchandise Inventory, how much does the firm have in Merchandise Inventory? Note: Do not round intermediate calculations. c. If the firm collects an account receivable of $118,000, what will its new current ratio and working capital be? Note: Round "Current ratio" to 1 decimal place. d. If the firm pays an account payable of $57,000, what will its new current ratio and working capital be? Note: Do not round intermediate calculations. Round "Current ratio" to 1 decimal place. e.…
ease PROBLEM 17-15 Effects of Transactions on Various Financial Ratios [LO2, LO3. L0 your choice. In all cases, assume that the current assets exceed current liabilities both before and the effect in terms of increase, decrease, or no effect on the ratio involved, and give the reason for Indicate the effect that each transaction or event would have on the ratio listed opposite to it. State In the right-hand column below, certain financial ratios are listed. To the left of each ratio is a business transaction or event relating to the operating activities of Graham Company. Business Transaction or Event Ratio Debt-to-equity ratio Earnings per share Acid-test ratio 1. Inventory was sold for cash at a profit. 2. Land was purchased for cash. 3. Inventory was sold on account at cost. 4. Some accounts payable were paid off. 5. A customer paid an overdue bill. 6. A cash dividend was declared, but not yet paid. 7. A previously declared cash dividend was paid. 8. The company's common stock price…
27 Assume that the Accounts receivables, notes receivables, cash balance and inventory of the company is OMR 500, OMR 700,OMR 600 and OMR 700 respectively. The equity and total liabilities are OMR 2000 and OMR7000 respectively. From the following given options identify the fixed assets of the company. a. OMR 2500 b. None of the given options c. OMR 9000 d. OMR 6500 Clear my choice
Q.6 Analysis of Financial Statement: Cash $77.500; Receivable $336.000; Inventory $241,500: Fixed Asset $292.500 Account Payable $129,000; Note Payable $84,000: Other current liabilities $117.000; Long term Debt $256,500; Common equity $361,000 Compute i. Working capital ii. Current ratio iii. Quick ratio iv. Receivable turnover, where credit sales were Rs.1600,000 v. Inventory turnover where cost of goods sold Rs 1300,000 END OF EXAM PAPER FUUAS
Problem 3-8Profit Margin and Debt Ratio Assume you are given the following relationships for the Haslam Corporation: Sales/total assets 1.7 Return on assets (ROA) 2% Return on equity (ROE) 6% Calculate Haslam's profit margin. Do not round intermediate calculations. Round your answer to two decimal places. % Calculate Haslam's liabilities-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places. % Suppose half of Haslam's liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places. %
Ratio Analysis 28 8. Equipment is purchased with long-term notes. 9 Utility expenses are paid (they 10. A cash dividend is paid. Problem 2 MeDaniel's Place has selected financial ratios for 20X1-20X3 as follows: 20X2 20X3 Current ratio Accounts receivable turnover 1.15 1.2 Inventory turnover 13 12 23 22 Asset turnover Debt-equity ratio 1.3 1.4 1.5 1.5 1.4 1.3 Times interest earned 3.8 3.9 Sales for the three years were $1 million, $1.2 million, and $1.4 million, respectively. Required: 1. Assume total assets did not change during 20X3. Determine the total debt at the end of 20X3, 2. If cost of sales were 10 percent of total sales, what was the average inventory for 20X3? 3. Comment on the changing liquidity of McDaniel's Place over the three-year period. 4. Comment on the changing solvency of this business over the three-year period. Problem 3 The Alston Inn is managed by Inns, Inc. The management contract requires 6 percent of total revenue to be transferred to the replacement…
O 1 2 3 4 5 6 7 B D E F G H J SDJ, Inc., has net working capital of $2,710, current liabilities of $3,950, and inventory of $3,420. What is the current ratio? What is the quick ratio? Net working capital $ 2,710 Current liabilities $ 3,950 Inventory $ 3,420 Complete the following analysis. Do not hard code values in your calculations. Current assets Current ratio Quick ratio