Short-Term Liquidity Ratios The financial statements for Puck Enterprises, a retailer, follow. Puck Enterprises Consolidated Income Statements (millions of dollars except per share data) December 31 2023 2022 2021 Revenues $19,233 $17,927 $16,115 Costs and expenses: Cost of retail sales, buying, and occupancy $14,164 $13,129 $11,751 Selling, publicity, and administration 3,175 2,978 2,801 Depreciation 498 459 410 Interest expense, net 446 437 398 Taxes other than income taxes 343 313 283 Total costs and expenses $18,626 $17,316 $15,643 Earnings before income taxes $607 $611 $472 Provision for income taxes 232 228 171 Net earnings $375 $383 $301 Puck Enterprises Consolidated Balance Sheets (millions of dollars) December 31, 2023 2022 ASSETS Current assets: Cash and cash equivalents $521 $117 Accounts receivable 1,536 1,514 Merchandise inventories 2,497 2,618 Other 267 165 Total current assets $4,821 $4,414 Property and equipment: Land $2,480 $998 Buildings and improvements 4,753 4,342 Fixtures and equipment 1,982 2,197 Construction-in-progress 248 223 Accumulated depreciation (2,336) (2,197) Net property and equipment $7,127 $5,563 Other 320 587 Total assets $12,268 $10,564 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Notes payable $200 $23 Accounts payable 1,654 1,347 Accrued liabilities 903 849 Income taxes payable 145 160 Current portion of long-term debt 173 371 Total current liabilities $3,075 $2,750 Long-term debt 4,279 4,771 Deferred income taxes and other 536 450 Loan to ESOP (217) (267) Total liabilities $7,673 $7,704 Stockholders' equity: Preferred stock 368 374 Common stock 72 71 Additional paid-in capital–common 73 58 Retained earnings 4,082 2,357 Total stockholders' equity $4,595 $2,860 Total liabilities and stockholders' equity $12,268 $10,564 Required: 1. Compute the four short-term liquidity ratios (rounded to two decimal places) for 2022 and 2023, assuming operating cash flows are $394 million and $501 million, respectively. Round your answers to two decimal places.

Short-Term Liquidity Ratios The financial statements for Puck Enterprises, a retailer, follow. Puck Enterprises Consolidated Income Statements (millions of dollars except per share data) December 31 2023 2022 2021 Revenues $19,233 $17,927 $16,115 Costs and expenses: Cost of retail sales, buying, and occupancy $14,164 $13,129 $11,751 Selling, publicity, and administration 3,175 2,978 2,801 Depreciation 498 459 410 Interest expense, net 446 437 398 Taxes other than income taxes 343 313 283 Total costs and expenses $18,626 $17,316 $15,643 Earnings before income taxes $607 $611 $472 Provision for income taxes 232 228 171 Net earnings $375 $383 $301 Puck Enterprises Consolidated Balance Sheets (millions of dollars) December 31, 2023 2022 ASSETS Current assets: Cash and cash equivalents $521 $117 Accounts receivable 1,536 1,514 Merchandise inventories 2,497 2,618 Other 267 165 Total current assets $4,821 $4,414 Property and equipment: Land $2,480 $998 Buildings and improvements 4,753 4,342 Fixtures and equipment 1,982 2,197 Construction-in-progress 248 223 Accumulated depreciation (2,336) (2,197) Net property and equipment $7,127 $5,563 Other 320 587 Total assets $12,268 $10,564 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Notes payable $200 $23 Accounts payable 1,654 1,347 Accrued liabilities 903 849 Income taxes payable 145 160 Current portion of long-term debt 173 371 Total current liabilities $3,075 $2,750 Long-term debt 4,279 4,771 Deferred income taxes and other 536 450 Loan to ESOP (217) (267) Total liabilities $7,673 $7,704 Stockholders' equity: Preferred stock 368 374 Common stock 72 71 Additional paid-in capital–common 73 58 Retained earnings 4,082 2,357 Total stockholders' equity $4,595 $2,860 Total liabilities and stockholders' equity $12,268 $10,564 Required: 1. Compute the four short-term liquidity ratios (rounded to two decimal places) for 2022 and 2023, assuming operating cash flows are $394 million and $501 million, respectively. Round your answers to two decimal places.

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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Short-Term Liquidity Ratios

The financial statements for Puck Enterprises, a retailer, follow.

Puck Enterprises
Consolidated Income Statements
(millions of dollars except per share data)
	December 31
	2023	2022	2021
Revenues	$19,233	$17,927	$16,115
Costs and expenses:
Cost of retail sales, buying, and occupancy	$14,164	$13,129	$11,751
Selling, publicity, and administration	3,175	2,978	2,801
Depreciation	498	459	410
Interest expense, net	446	437	398
Taxes other than income taxes	343	313	283
Total costs and expenses	$18,626	$17,316	$15,643
Earnings before income taxes	$607	$611	$472
Provision for income taxes	232	228	171
Net earnings	$375	$383	$301

Puck Enterprises
Consolidated Balance Sheets
(millions of dollars)
	December 31,
	2023	2022
ASSETS
Current assets:
Cash and cash equivalents	$521	$117
Accounts receivable	1,536	1,514
Merchandise inventories	2,497	2,618
Other	267	165
Total current assets	$4,821	$4,414
Property and equipment:
Land	$2,480	$998
Buildings and improvements	4,753	4,342
Fixtures and equipment	1,982	2,197
Construction-in-progress	248	223
Accumulated depreciation	(2,336)	(2,197)
Net property and equipment	$7,127	$5,563
Other	320	587
Total assets	$12,268	$10,564
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable	$200	$23
Accounts payable	1,654	1,347
Accrued liabilities	903	849
Income taxes payable	145	160
Current portion of long-term debt	173	371
Total current liabilities	$3,075	$2,750
Long-term debt	4,279	4,771
Deferred income taxes and other	536	450
Loan to ESOP	(217)	(267)
Total liabilities	$7,673	$7,704
Stockholders' equity:
Preferred stock	368	374
Common stock	72	71
Additional paid-in capital–common	73	58
Retained earnings	4,082	2,357
Total stockholders' equity	$4,595	$2,860
Total liabilities and stockholders' equity	$12,268	$10,564

Required:

1. Compute the four short-term liquidity ratios (rounded to two decimal places) for 2022 and 2023, assuming operating cash flows are $394 million and $501 million, respectively. Round your answers to two decimal places.

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