Problem 7 Comp WORKING CAPITAL, CURRENT RATIO, AND QUICK RATIO. Charles Corporation's balance sheet at December 31, 20X7, shows the following: Current assets $4.000 Cash 8.000 Marketable securities 100.000 Accounts receivable 120,000 Inventories 1.000 Prepaid expenses Total current assets S233.000 Current liabilities Notes payable $5.000 150.000 Accounts payable Accrued expenses 20.000 Income taxes payable 1.000 Total current liabilities $176.000 Long-term liabilities S340.000 Requirement: Determine the following: a. net working capital; b. current ratio; and c. quíck ratio.

Problem 7 Comp WORKING CAPITAL, CURRENT RATIO, AND QUICK RATIO. Charles Corporation's balance sheet at December 31, 20X7, shows the following: Current assets $4.000 Cash 8.000 Marketable securities 100.000 Accounts receivable 120,000 Inventories 1.000 Prepaid expenses Total current assets S233.000 Current liabilities Notes payable $5.000 150.000 Accounts payable Accrued expenses 20.000 Income taxes payable 1.000 Total current liabilities $176.000 Long-term liabilities S340.000 Requirement: Determine the following: a. net working capital; b. current ratio; and c. quíck ratio.

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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Current Position Analysis The following items are reported on a company's balance sheet: Cash $537,500 Marketable securities 419,900 Accounts receivable (net) 334,600 Inventory 387,600 Accounts payable 646,000 Determine (a) the current ratio and (b) the quick ratio. Round your answers to one decimal place. a. Current ratio fill in the blank 1 b. Quick ratio
Prior Year Current Year Accounts payable 3,153.00 5,915.00 Accounts receivable 6,935.00 9,046.00 Accruals 5,794.00 6,085.00 Additional paid in capital 19,655.00 13,876.00 Cash. ??? ??? Common Stock 2,850 2,850 COGS 22,169.00 18,794.00 Current portion long-term debt 500 500 Depreciation expense 1,016.00 1,037.00 Interest expense 1,276.00 1,138.00 Inventories 3,041.00 6,672.00 Long-term debt 16,904.00 22,546.00 Net fixed assets 75,987.00 73,861.00 Notes payable 4,002.00 6,534.00 Operating expenses (excl. depr.) 19,950 20,000 Retained earnings 35,536.00 34,724.00 Sales 46,360 45,799.00 Taxes 350 920 Category ww What is the firm's total change in cash from the prior year to the current year?
Given the information below, calculate the Working Capital and Current Ratio 1 Cash and marketable securities - $3,500,000 2 Accounts Receivable (Gross) - $2,000,000 Allowance for doubtful accounts 2.5% 3 Accounts Payable - $2,500,000 4 Accumulated Depreciation 2,500,000 6 Inventory - $3,500,000 7 Other Current Assets - $1,000,000 8 Common Stock at Par Value - $100,000 9 Current portion of long term notes - $1,000,000 10 Other Current Liabilities - $1,950,000 11 Goodwill - $10,000,000 12 Long-Term debt - $10,000,000
Problem 4-15 Lloyd Inc. has sales of $200,000, a net income of $15,000, and the following balance sheet: ASSETS Cash Receivables Inventories Total Current assets Net fixed assets Total assets AMOUNT LIABILITIES & EQUITY $10,000 Accounts Payables 50,000 Notes Payable to bank 150,000 Total current liabilities $210,000 Long-term debt 90,000 Common Equity $300,000 Total Liabilities and Equity AMOUNT $30,000 20,000 $50,000 50,000 200,000 $300,000 The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry average, 2.53, without affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to 2.53), if the funds generated are used to reduce common equity (stock can be repurchased at book value), and if no other changes occur, by how much will the ROE change? What will be the firm's new quick ratio? Problem 4-1 Baxley Brothers has a DSO of 23 days, and its annual sales are…
3. Calculate current ratio and Liquid ratio from the following: RO 152,000 RO 113,000 RO 24,000 RO 18,000 RO 8,000 Share capital Fixed Assets 5% Debentures Debtors General reserve Cash in hand and at Bank Creditors Bill Payables Stock RO 30,000 RO 20,000 RO 4,000 RO 52,000 RO 5,000 Profit and Loss A/c
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Miracle Bank's balance sheet is the following. Assets Reserves Loans Short-term securities a. 70 Miracle Bank's leverage ratio is Ob. 0.0857 c. 8.57 Miracle Bank Od. 80 Liabilities & Owners' Equity $600 Deposits 6,400 Debt 1000 Capital (owners' equity) $7,000 990 10
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Current Position Analysis The following items are reported on a company's balance sheet: Cash $423,700 Marketable securities 331,000 Accounts receivable (net) 304,500 Inventory 264,800 Accounts payable 662,000 Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place. a. Current ratio fill in the blank 1 b. Quick ratio fill in the blank 2
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