Required: 1. Calculate the following risk ratios for 2024: 2. When we compare two companies, can one have a higher current ratio while the other has a higher acid-test ratio? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the following risk ratios for 2024: (Round your answers to 1 decimal place.) Risk Ratios a. Receivables turnover ratio b. Inventory turnover ratio c. Current ratio d. Acid-test ratio e. Debt to equity ratio times times % Required 1 Required 2 >
Required: 1. Calculate the following risk ratios for 2024: 2. When we compare two companies, can one have a higher current ratio while the other has a higher acid-test ratio? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the following risk ratios for 2024: (Round your answers to 1 decimal place.) Risk Ratios a. Receivables turnover ratio b. Inventory turnover ratio c. Current ratio d. Acid-test ratio e. Debt to equity ratio times times % Required 1 Required 2 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required:
1. Calculate the following risk ratios for 2024:
2. When we compare two companies, can one have a higher current ratio while the other has a higher acid-test ratio?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Calculate the following risk ratios for 2024: (Round your answers to 1 decimal place.)
Risk Ratios
a. Receivables turnover ratio
b. Inventory turnover ratio
c. Current ratio
d. Acid-test ratio
e. Debt to equity ratio
times
times
%
Required 1
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F96f1460f-c30c-40f6-b439-129c05adb630%2Fb08fca1c-8fb0-4a78-8272-2408b98fce3d%2Fak1wg4q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required:
1. Calculate the following risk ratios for 2024:
2. When we compare two companies, can one have a higher current ratio while the other has a higher acid-test ratio?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Calculate the following risk ratios for 2024: (Round your answers to 1 decimal place.)
Risk Ratios
a. Receivables turnover ratio
b. Inventory turnover ratio
c. Current ratio
d. Acid-test ratio
e. Debt to equity ratio
times
times
%
Required 1
Required 2 >
![The balance sheets for Video Screens Corporation and additional information are provided below.
VIDEO SCREENS CORPORATION
Balance Sheets.
December 31, 2024 and 2023
Assets
Current assets:
Cash
Accounts receivable
Inventory
Investments
Long-term assets:
Land
Equipment
Less: Accumulated depreciation
Total assets
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
Interest payable
Income tax payable
Long-term liabilities:
Notes payable
Stockholders' equity:
Common stock
Retained earnings
Total liabilities and stockholders' equity
Additional information for 2024:
1. Net income is $142,800.
2. Sales on account are $1,281,400.
3. Cost of goods sold is $1,014,300.
2024
$191,200
64,000
88,000
3,300
410,000
720,000
2023
$92,000
5,500
7,500
$113,000
85,000
73,000
1,300
410,000
600,000
(358,000) (198,000)
$1,118,500 $1,084,300
$78,000
11,300
4,300
120,000
240,000
630,000
630,000
263,500
120,700
$1,118,500 $1,084,300](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F96f1460f-c30c-40f6-b439-129c05adb630%2Fb08fca1c-8fb0-4a78-8272-2408b98fce3d%2Fz7nz0gq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The balance sheets for Video Screens Corporation and additional information are provided below.
VIDEO SCREENS CORPORATION
Balance Sheets.
December 31, 2024 and 2023
Assets
Current assets:
Cash
Accounts receivable
Inventory
Investments
Long-term assets:
Land
Equipment
Less: Accumulated depreciation
Total assets
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
Interest payable
Income tax payable
Long-term liabilities:
Notes payable
Stockholders' equity:
Common stock
Retained earnings
Total liabilities and stockholders' equity
Additional information for 2024:
1. Net income is $142,800.
2. Sales on account are $1,281,400.
3. Cost of goods sold is $1,014,300.
2024
$191,200
64,000
88,000
3,300
410,000
720,000
2023
$92,000
5,500
7,500
$113,000
85,000
73,000
1,300
410,000
600,000
(358,000) (198,000)
$1,118,500 $1,084,300
$78,000
11,300
4,300
120,000
240,000
630,000
630,000
263,500
120,700
$1,118,500 $1,084,300
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