Homework Help is Here – Start Your Trial Now!
Business
Accounting
Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings $ 72,000 36,000 36,000 Required: Compute the following financial data and ratios for this year: Answer is complete but not entirely correct. 1. Working capital $ 2,670x 2. Current ratio 1.12 3. Acid-test ratio 0.47 X 1. Working capital. (Enter your answer in thousands.) 2. Current ratio. (Round your answer to 2 decimal places.) 3. Acid-test ratio. (Round your answer to 2 decimal places.) 11,100 6,500 17,600 18,400 820 10,023 33,988 $ 44,011 17,580 7,032 10,548 525 $ 66,000 42,000 24,000 10,800 6,500 17,300 6,700 820 5,880 2,352 3,528 280 3,248 30,740 $ 33,988

Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings $ 72,000 36,000 36,000 Required: Compute the following financial data and ratios for this year: Answer is complete but not entirely correct. 1. Working capital $ 2,670x 2. Current ratio 1.12 3. Acid-test ratio 0.47 X 1. Working capital. (Enter your answer in thousands.) 2. Current ratio. (Round your answer to 2 decimal places.) 3. Acid-test ratio. (Round your answer to 2 decimal places.) 11,100 6,500 17,600 18,400 820 10,023 33,988 $ 44,011 17,580 7,032 10,548 525 $ 66,000 42,000 24,000 10,800 6,500 17,300 6,700 820 5,880 2,352 3,528 280 3,248 30,740 $ 33,988

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
Topic Video
Question

Hh1.

Account 

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings This Year $ 72,000 36,000 36,000 Required: Compute the following financial data and ratios for this year: Answer is complete but not entirely correct. $ 2,670 X 1. Working capital 2. Current ratio 1.12 X 3. Acid-test ratio 0.47 X 1. Working capital. (Enter your answer in thousands.) 2. Current ratio. (Round your answer to 2 decimal places.) 3. Acid-test ratio. (Round your answer to 2 decimal places.) 11,100 6,500 17,600 18,400 820 10,023 33,988 $ 44,011 17,580 7,032 10,548 525 Last Year $ 66,000 42,000 24,000 10,800 6,500 17,300 6,700 820 5,880 2,352 3,528 280 3,248 30,740 $ 33,988
Transcribed Image Text:Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings This Year $ 72,000 36,000 36,000 Required: Compute the following financial data and ratios for this year: Answer is complete but not entirely correct. $ 2,670 X 1. Working capital 2. Current ratio 1.12 X 3. Acid-test ratio 0.47 X 1. Working capital. (Enter your answer in thousands.) 2. Current ratio. (Round your answer to 2 decimal places.) 3. Acid-test ratio. (Round your answer to 2 decimal places.) 11,100 6,500 17,600 18,400 820 10,023 33,988 $ 44,011 17,580 7,032 10,548 525 Last Year $ 66,000 42,000 24,000 10,800 6,500 17,300 6,700 820 5,880 2,352 3,528 280 3,248 30,740 $ 33,988
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 700,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company's common stock at the end of this year was $24. All of the company's sales are on account. Assets Current assets: Cash Weller Corporation Comparative Balance Sheet (dollars in thousands) Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity This Year $ 1,110 9,100 13,600 800 24,610 10,000 42,351 52,351 $ 76,961 $ 18,800 1,060 190 20,050 8,200 28,250 700 4,000 4,700 44,011 48,711 $ 76,961 Last Year $ 1,210 7,700 12,400 630 21,940 10,000 34,678 44,678 $ 66,618 $ 18,800 740 190 19,730 8,200 27,930 700 4,000 4,700 33,988 38,688 $ 66,618
Transcribed Image Text:Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 700,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company's common stock at the end of this year was $24. All of the company's sales are on account. Assets Current assets: Cash Weller Corporation Comparative Balance Sheet (dollars in thousands) Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity This Year $ 1,110 9,100 13,600 800 24,610 10,000 42,351 52,351 $ 76,961 $ 18,800 1,060 190 20,050 8,200 28,250 700 4,000 4,700 44,011 48,711 $ 76,961 Last Year $ 1,210 7,700 12,400 630 21,940 10,000 34,678 44,678 $ 66,618 $ 18,800 740 190 19,730 8,200 27,930 700 4,000 4,700 33,988 38,688 $ 66,618
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting Equation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
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