Problem 9-16 A firm’s balance sheets for the last two years are as follows: YEAR 20X1 Assets Liabilities and Equity Cash $ 5,000 Accounts payable $ 12,000 Accruals 7,000 Accounts receivable 16,000 Current bank note 12,000 Inventory 23,000 Long-term debt 9,000 Plant and equipment 36,000 Common stock 19,000 Retained earnings 21,000 $ 80,000 $ 80,000 YEAR 20X2 Assets Liabilities and Equity Cash $ 4,000 Accounts payable $ 12,000 Accruals 13,000 Accounts receivable 17,000 Current bank note 8,000 Inventory 23,000 Long-term debt 4,000 Plant and equipment 36,000 Common stock 20,000 Retained earnings 23,000 $ 80,000 $ 80,000 Sales in 20X1 were $205,000. Sales in 20X2 were $205,000. Based solely on the current ratio and the quick ratio, has the firm’s liquidity position deteriorated or improved? Round your answers to two decimal places. Current ratios: 20x1: 20x2: Quick ratios: 20x1: 20x2: The firm’s liquidity position has -Select-deterioratedimprovedremained the sameItem 5 . Without doing a calculation, has days sales outstanding (receivables turnover) improved? Days sale outstanding has -Select-deterioratedimprovedremained the sameItem 6 . Without doing a calculation, has inventory turnover deteriorated? Inventory turnover has -Select-deterioratedimprovedremained the sameItem 7 . If the firm earned $7,000 during 20X2, what proportion of those earnings were distributed? Round your answer to two decimal places. ___%
Problem 9-16 A firm’s balance sheets for the last two years are as follows: YEAR 20X1 Assets Liabilities and Equity Cash $ 5,000 Accounts payable $ 12,000 Accruals 7,000 Accounts receivable 16,000 Current bank note 12,000 Inventory 23,000 Long-term debt 9,000 Plant and equipment 36,000 Common stock 19,000 Retained earnings 21,000 $ 80,000 $ 80,000 YEAR 20X2 Assets Liabilities and Equity Cash $ 4,000 Accounts payable $ 12,000 Accruals 13,000 Accounts receivable 17,000 Current bank note 8,000 Inventory 23,000 Long-term debt 4,000 Plant and equipment 36,000 Common stock 20,000 Retained earnings 23,000 $ 80,000 $ 80,000 Sales in 20X1 were $205,000. Sales in 20X2 were $205,000. Based solely on the current ratio and the quick ratio, has the firm’s liquidity position deteriorated or improved? Round your answers to two decimal places. Current ratios: 20x1: 20x2: Quick ratios: 20x1: 20x2: The firm’s liquidity position has -Select-deterioratedimprovedremained the sameItem 5 . Without doing a calculation, has days sales outstanding (receivables turnover) improved? Days sale outstanding has -Select-deterioratedimprovedremained the sameItem 6 . Without doing a calculation, has inventory turnover deteriorated? Inventory turnover has -Select-deterioratedimprovedremained the sameItem 7 . If the firm earned $7,000 during 20X2, what proportion of those earnings were distributed? Round your answer to two decimal places. ___%
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
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Problem 9-16
A firm’s
| YEAR 20X1 | ||||||
| Assets | Liabilities and Equity | |||||
| Cash | $ | 5,000 | Accounts payable | $ | 12,000 | |
| Accruals | 7,000 | |||||
| Accounts receivable | 16,000 | Current bank note | 12,000 | |||
| Inventory | 23,000 | Long-term debt | 9,000 | |||
| Plant and equipment | 36,000 | Common stock | 19,000 | |||
| 21,000 | ||||||
| $ | 80,000 | $ | 80,000 | |||
| YEAR 20X2 | ||||||
| Assets | Liabilities and Equity | |||||
| Cash | $ | 4,000 | Accounts payable | $ | 12,000 | |
| Accruals | 13,000 | |||||
| Accounts receivable | 17,000 | Current bank note | 8,000 | |||
| Inventory | 23,000 | Long-term debt | 4,000 | |||
| Plant and equipment | 36,000 | Common stock | 20,000 | |||
| Retained earnings | 23,000 | |||||
| $ | 80,000 | $ | 80,000 | |||
Sales in 20X1 were $205,000. Sales in 20X2 were $205,000.
- Based solely on the current ratio and the quick ratio, has the firm’s liquidity position deteriorated or improved? Round your answers to two decimal places.
Current ratios:
20x1:
20x2:
Quick ratios:
20x1:
20x2:
The firm’s liquidity position has -Select-deterioratedimprovedremained the sameItem 5 .
- Without doing a calculation, has days sales outstanding (receivables turnover) improved?
Days sale outstanding has -Select-deterioratedimprovedremained the sameItem 6 .
- Without doing a calculation, has inventory turnover deteriorated?
Inventory turnover has -Select-deterioratedimprovedremained the sameItem 7 .
- If the firm earned $7,000 during 20X2, what proportion of those earnings were distributed? Round your answer to two decimal places. ___%
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