!Required information[The following information applies to the questions displayed below.]Simon Company's year-end balance sheets follow.At December 31AssetsCashAccounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, netTotal assetsLiabilities and EquityAccounts payableLong-term notes payableCommon stock, $10 par valueRetained earningsCurrent Year1 Year Ago2 Years Ago$ 43,24774,941$ 35,910107,232130,85811,564329,227$ 614,791$ 153,083113,269163,500184,93999,02911,241301,534$ 529,992$ 88,673120,679163,500157,140$ 529,992$ 42,01057,15662,1014,763266,970$ 433,000$ 57,15696,650162,500116,694$ 433,000Total liabilities and equity$ 614,791

The provided information shows Simon Company's balance sheets for the current year, one year ago,…

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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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Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars) appear below: Year 2 Year 1 Current assets: Cash $162 $100 Accounts receivable, net Inventory Prepaid expenses 192 192 142 132 92 92 Total current assets $588 $516 Current liabilities: $202 $182 Accounts payable Accrued liabilities 32 32 Notes payable, short term 92 82 Total current liabilities $326 $296 Sales on account during the year totaled $1,210 thousand. Cost of goods sold was $810 thousand. Requlred: Compute the following for Year 2: a. Working capital. (Enter your answer in thousands of dollars, I.e., 100,000 should be entered as 100.) b. Current ratio. (Round your answer to 2 decimal places.) C. Acid-test (quick) ratio. (Round your answer to 2 decimal places.) d. Accounts receivable turnover. (Round your answer to 2 declmal places.) e. Average collection period. (Use 365 days in a year. Round your intermediate calculatlons to 2 decimals places and your final answer to 1 decimal place.) f.…
(1) Debt and equity ratios. (2-a) Compute debt-to-equity ratio for the current year and one year ago. (2-b) Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? (3-a) Times interest earned. (3-b) Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3A Required 3B Compute debt and equity ratio for the current year and one year ago. Current Year: 1 Year Ago: Current Year: 1 Year Ago: Numerator: Numerator: Debt Ratio 1 1 Equity Ratio 1 1 1 1 Required 1 Denominator: Denominator: = = = Required 2A > Debt Ratio Debt ratio % % Equity Ratio Equity ratio % %
Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year Interest expense Income tax expense Total costs and expenses Net income Earnings per share $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 $ 129,900 98,500 163,500 131, 100 $ 523,000 Current Year 1 Year Ago $ 411,225 209,550 12,100 9,525 $ 35,625 62,500 82,500 9,375 255,000 $ 445,000 $ 75,250 101,500 163,500 104,750 $ 445,000 The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses $ 673,500 2 Years Ago $ 37,800 50, 200 54,000 5,000 230,500 $ 377,500 642,400 $ 31,100 $ 1.90 $ 51,250…
Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars) appear below: Year 2 Year 1 Current assets: Cash $162 $100 Accounts receivable, net Inventory Prepaid expenses 192 192 142 132 92 92 Total current assets $588 $516 Current liabilities: Accounts payable Accrued liabilities $202 $182 32 32 Notes payable, short term 92 82 Total current liabilities $326 $296 Sales on account during the year totaled $1,210 thousand. Cost of goods sold was $810 thousand. Requlred: Compute the following for Year 2: a. Working capital. (Enter your answer In thousands of dollars, I.e., 100,000 should be entered as 100.) b. Current ratio. (Round your answer to 2 decimal places.) C. Acid-test (quick) ratio. (Round your answer to 2 decimal places.) d. Accounts recelvable turnover. (Round your answer to 2 decimal places.) e. Average collection perlod. (Use 365 days In a year. Round your Intermedlate calculatlons to 2 decimals places and your final answer to 1 decimal place.) f.…
The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash $414,000 $320,000 Marketable securities 496,800 336,000 Accounts and notes receivable (net) 619,200 464,000 Inventories 351,900 272,000 Prepaid expenses 188,100 208,000 Total current assets $2,070,000 $1,600,000 Current liabilities: Accounts and notes payable (short-term) $675,000 $600,000 Accrued liabilities 225,000 200,000 Total current liabilities $900,000 $800,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current Year Previous Year 1. Working capital $ $ 2. Current ratio 3. Quick ratio b. The liquidity of Nilo has from the preceding year to the current year. The working…
The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash $418,000 $345,600 Marketable securities 484,000 388,800 Accounts and notes receivable (net) 198,000 129,600 Inventories 290,400 87,800 Prepaid expenses 149,600 56,200 Total current assets $1,540,000 $1,008,000 Current liabilities: Accounts and notes payable (short-term) $319,000 $336,000 Accrued liabilities 231,000 144,000 Total current liabilities $550,000 $480,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current Year Previous Year 1. Working capital 2. Current ratio 3. Quick ratio b. The liquidity of Albertini has from the preceding year to the current year. The working capital, current ratio, and quick ratio have all Most of these changes are the result of an in current assets relative to current liabilities.
Use the following information to prepare a classified balance sheet for Alpha Co. at the end of 2018. Accounts receivable Accounts payable Cash Common stock Land Long-term notes payable Merchandise inventory Retained earnings S 40,730 8,820 14,350 42,000 16,000 20,200 31,475 31,535
Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable. Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 38,057 $ 37,692 $ 32,880 91,559 67,918 51,292 120,991 86,264 55,178 9,891 4,274 10,381 290,549 268,870 $ 546,360 $ 471,000 $ 136,044 100,661 162,500 147,155 $ 78,803 107,247 162,500 122,450 $ 546,360 $ 471,000 Current Year The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share. $ 433,263 220,183 12,075 9,233 $ 710,268 244,064 $ 392,500 674,754 $ 35,514 $ 2.19 $ 52,846 88,477 162,500 88,677 $ 392,500 1 Year Ago $364,319 141,804 12,891 8,407 $ 560,490…
Selected information from the comparative financial statements of AppleVerse Company for the year ended December 31 appears below: 2018 2017 Php Php Accounts receivable (net) 175,000 200,000 Inventory 130,000 150,000 Total assets 1,100,000 800,000 Current liabilities 140,000 110,000 Long-term debt 410,000 300,000 Net credit sales 800,000 700,000 Cost of goods sold 600,000 530.000 Interest expense 40.000 25,000 Income tax expense 60.000 29,000 Net income 150.000 85,000 Net cash provided by operating 220,000 135,000 activities Compute for the Receivables Turnover for 2018. O 2.13 O 4.27 O 5.95 O 3.23
Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Current Year 1 Year Ago 2 Years Ago $ 35,625 62,500 $ 37,800 50,200 $ 31,800 89,500 112,500 10,700 278,500 98,500 $ 523,000 $ 129,900 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 82,500 9,375 255,000 $ 445,000 $ 75,250 101,500 163,500 104,750 163,500 131,100 $ 523,000 $ 445,000 For both the current year and one year ago, compute the following ratios: 54,000 5,000 230,500 $ 377,500 $ 51,250 83,500 163,500 79,250 $ 377,500 1-a) Compute the current ratio for each of the three years. 1-b) Did the current ratio improve or worsen over the three-year period? 2-a) Compute the acid-test ratio for each of the three years. 2-b) Did the acid-test…
Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year $31,800 89,500 112,500 10,700 278,500 $523,000 $129,900 98,500 163,500 131,100 $523,000 1 Year Ago $35,625 62,500 82,500 9,375 255,000 $445,000 $75,250 101,500 2 Years Ago $37,800 50,200 54,000 5,000 230,500 $377,500 $51,250 83,500 163,500 163,500 104,750 79,250 $445,000 $377,500 Required: 1. Express the balance sheets in common-size percents. (Use cells A4 to D17 from the given information to complete this question.)
The net income for 2025 was $26,070. Assume that total assets are the same in 2024 and 2025. Compute each of the following ratios. (Round answers to 2 decimal places, e.g. 1.59 or 45.87%) (a) (b) (c) (d) Current ratio Acid-test ratio Debt to assets ratio Return on assets % %

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