Selected financial data for Wilmington Corporation is presented below. WILMINGTON CORPORATION     Balance Sheet       Dec. 31, Year 7 Dec. 31, Year 6 Current Assets     Cash and cash equivalents $519,159 $274,579 Marketable securities 166,106 187,064 Accounts receivable (net) 232,548 260,190 Inventories 382,044 352,022 Prepaid expenses 49,832 22,958 Other current assets 83,053 85,029 Total Current Assets 1,432,742 1,181,842 Property, plant and equipment 1,384,217 625,421 Long-term investment 568,003 425,000 Total Assets $3,384,962 $2,232,263 Current Liabilities     Short-term borrowings $306,376 $170,419 Current portion of long-term debt 155,000 168,000 Accounts payable 228,700 257,631 Accrued liabilities 246,292 150,285 Income taxes payable 87,962 161,020 Total Current Liabilities 1,024,330 907,355 Long-term debt 500,000 300,000 Deferred income taxes 193,515 236,164 Total Liabilities 1,717,845 1,443,519 Common stock $425,250 $125,000 Additional paid-in capital 356,450 344,335 Retained earnings 885,417 319,409 Total Stockholders' Equity 1,667,117 788,744 Total Liabilities and Stockholders' Equity $3,384,962 $2,232,263 Selected Income Statement Data for the year ending December 31, Year 7   Net sales $4,885,340 Cost of goods sold (2,978,182) Selling expenses (884,685) Operating income 1,022,473 Interest expense (55,240) Earnings before income taxes 967,233 Income tax expense (401,225) Net income $566,008 Selected Statement of Cash Flow Data for the year ending December 31, Year 7   Cash flows from operations $1,310,476 Capital expenditures $745,862 Wilmington Corporation’s quick ratio changed by what percentage from Year 6 to Year 7? Select one: a. + 88.9% b. + 11.1% c. + 12.5% d. + 7.7%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question

Selected financial data for Wilmington Corporation is presented below.

WILMINGTON CORPORATION    
Balance Sheet    
  Dec. 31, Year 7 Dec. 31, Year 6
Current Assets    
Cash and cash equivalents $519,159 $274,579
Marketable securities 166,106 187,064
Accounts receivable (net) 232,548 260,190
Inventories 382,044 352,022
Prepaid expenses 49,832 22,958
Other current assets 83,053 85,029
Total Current Assets 1,432,742 1,181,842
Property, plant and equipment 1,384,217 625,421
Long-term investment 568,003 425,000
Total Assets $3,384,962 $2,232,263
Current Liabilities    
Short-term borrowings $306,376 $170,419
Current portion of long-term debt 155,000 168,000
Accounts payable 228,700 257,631
Accrued liabilities 246,292 150,285
Income taxes payable 87,962 161,020
Total Current Liabilities 1,024,330 907,355
Long-term debt 500,000 300,000
Deferred income taxes 193,515 236,164
Total Liabilities 1,717,845 1,443,519
Common stock $425,250 $125,000
Additional paid-in capital 356,450 344,335
Retained earnings 885,417 319,409
Total Stockholders' Equity 1,667,117 788,744
Total Liabilities and Stockholders' Equity $3,384,962 $2,232,263



Selected Income Statement Data for the year ending December 31, Year 7  
Net sales $4,885,340
Cost of goods sold (2,978,182)
Selling expenses (884,685)
Operating income 1,022,473
Interest expense (55,240)
Earnings before income taxes 967,233
Income tax expense (401,225)
Net income $566,008



Selected Statement of Cash Flow Data for the year ending December 31, Year 7  
Cash flows from operations $1,310,476
Capital expenditures $745,862

Wilmington Corporation’s quick ratio changed by what percentage from Year 6 to Year 7?

Select one:
a. + 88.9%
b. + 11.1%
c. + 12.5%
d. + 7.7%
Expert Solution
Step 1: Define Ratios -

The ratio is the technique used by the prospective investor or an individual or strategist to read the company information in more detailed and accurate ways.

The ratio immediately determines the liquidity, profitability, and solvency of the company.

By using ratio analysis comparison between two companies can also be done very easily and accurately.

steps

Step by step

Solved in 5 steps

Blurred answer
Knowledge Booster
Financial Statements
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.
Similar questions
  • SEE MORE QUESTIONS
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