Homework Help is Here – Start Your Trial Now!
Business
Accounting
Required Information The Foundational 15 (Algo) [LO14-2, LO14-3, LO14-4, LO14-5, LO14-6] [The following information applies to the questions displayed below.] Markus Company's common stock sold for $3.50 per share at the end of this year. The company paid a common stock dividend of $0.63 per share this year. It also provided the following data excerpts from this year's financial statements: Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities $ 55,500 $ 136,800 Ending Balance Beginning Balance $ 35,000 $ 34,000 $ 70,000 $ 55,000 $ 60,700 $ 70,000 $ 165,700 $ 159,000 $ 557,000 $ 586,800 $ 67,500 $ 152,000 $ 133,000 $ 133,000 $ 405,000 $ 450,000 Total liabilities and stockholders' equity $ 557,000 $ 586,800 This Year Sales (all on account) Cost of goods sold $ 825,000 $ 478,500 Common stock, $1 par value Total stockholders' equity Gross margin Net operating income Interest expense Net income $ 346,500 $ 194,250 $ 10,500 $ 128,625 Foundational 14-8 (Algo) 8. What is the acid-test ratio at the end of this year? (Round your answer to 2 decimal places.) Acid-test ratio

Required Information The Foundational 15 (Algo) [LO14-2, LO14-3, LO14-4, LO14-5, LO14-6] [The following information applies to the questions displayed below.] Markus Company's common stock sold for $3.50 per share at the end of this year. The company paid a common stock dividend of $0.63 per share this year. It also provided the following data excerpts from this year's financial statements: Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities $ 55,500 $ 136,800 Ending Balance Beginning Balance $ 35,000 $ 34,000 $ 70,000 $ 55,000 $ 60,700 $ 70,000 $ 165,700 $ 159,000 $ 557,000 $ 586,800 $ 67,500 $ 152,000 $ 133,000 $ 133,000 $ 405,000 $ 450,000 Total liabilities and stockholders' equity $ 557,000 $ 586,800 This Year Sales (all on account) Cost of goods sold $ 825,000 $ 478,500 Common stock, $1 par value Total stockholders' equity Gross margin Net operating income Interest expense Net income $ 346,500 $ 194,250 $ 10,500 $ 128,625 Foundational 14-8 (Algo) 8. What is the acid-test ratio at the end of this year? (Round your answer to 2 decimal places.) Acid-test ratio

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Rahul 

Required Information The Foundational 15 (Algo) [LO14-2, LO14-3, LO14-4, LO14-5, LO14-6] [The following information applies to the questions displayed below.] Markus Company's common stock sold for $3.50 per share at the end of this year. The company paid a common stock dividend of $0.63 per share this year. It also provided the following data excerpts from this year's financial statements: Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities $ 55,500 $ 136,800 Ending Balance Beginning Balance $ 35,000 $ 34,000 $ 70,000 $ 55,000 $ 60,700 $ 70,000 $ 165,700 $ 159,000 $ 557,000 $ 586,800 $ 67,500 $ 152,000 $ 133,000 $ 133,000 $ 405,000 $ 450,000 Total liabilities and stockholders' equity $ 557,000 $ 586,800 This Year Sales (all on account) Cost of goods sold $ 825,000 $ 478,500 Common stock, $1 par value Total stockholders' equity Gross margin Net operating income Interest expense Net income $ 346,500 $ 194,250 $ 10,500 $ 128,625 Foundational 14-8 (Algo) 8. What is the acid-test ratio at the end of this year? (Round your answer to 2 decimal places.) Acid-test ratio
Transcribed Image Text:Required Information The Foundational 15 (Algo) [LO14-2, LO14-3, LO14-4, LO14-5, LO14-6] [The following information applies to the questions displayed below.] Markus Company's common stock sold for $3.50 per share at the end of this year. The company paid a common stock dividend of $0.63 per share this year. It also provided the following data excerpts from this year's financial statements: Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities $ 55,500 $ 136,800 Ending Balance Beginning Balance $ 35,000 $ 34,000 $ 70,000 $ 55,000 $ 60,700 $ 70,000 $ 165,700 $ 159,000 $ 557,000 $ 586,800 $ 67,500 $ 152,000 $ 133,000 $ 133,000 $ 405,000 $ 450,000 Total liabilities and stockholders' equity $ 557,000 $ 586,800 This Year Sales (all on account) Cost of goods sold $ 825,000 $ 478,500 Common stock, $1 par value Total stockholders' equity Gross margin Net operating income Interest expense Net income $ 346,500 $ 194,250 $ 10,500 $ 128,625 Foundational 14-8 (Algo) 8. What is the acid-test ratio at the end of this year? (Round your answer to 2 decimal places.) Acid-test ratio
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS