The balance sheets for Dual Monitors Corporation and additional information are provided below. DUAL MONITORS CORPORATION Balance Sheets December 31, 2024 and 2023 2024 2023 Assets Current assets: Cash Accounts receivable Inventory Investments Long-term assets: 'Land Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable $201,200 $126,000 90,000 98,000 101,000 86,000 4,600 2,600 540,000 540,000 850,000 730,000 (488,000) (328,000) $1,298,800 $1,254,600 $105,000 $91,000 Interest payable 8,500 12,600 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings 10,500 5,600 100,000 200,000 760,000 760,000 314,800 185,400 Total liabilities and stockholders' equity $1,298,800 $1,254,600 Additional information for 2024: 1. Net income is $129,400. 2. Sales on account are $1,739,000. 3. Cost of goods sold is $1,299,650. Required: 1. Calculate the following risk ratios for 2024: 2. When we compare two companies, can one have a higher current ratio while the other has a higher acid-test ratio?
The balance sheets for Dual Monitors Corporation and additional information are provided below. DUAL MONITORS CORPORATION Balance Sheets December 31, 2024 and 2023 2024 2023 Assets Current assets: Cash Accounts receivable Inventory Investments Long-term assets: 'Land Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable $201,200 $126,000 90,000 98,000 101,000 86,000 4,600 2,600 540,000 540,000 850,000 730,000 (488,000) (328,000) $1,298,800 $1,254,600 $105,000 $91,000 Interest payable 8,500 12,600 Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings 10,500 5,600 100,000 200,000 760,000 760,000 314,800 185,400 Total liabilities and stockholders' equity $1,298,800 $1,254,600 Additional information for 2024: 1. Net income is $129,400. 2. Sales on account are $1,739,000. 3. Cost of goods sold is $1,299,650. Required: 1. Calculate the following risk ratios for 2024: 2. When we compare two companies, can one have a higher current ratio while the other has a higher acid-test ratio?
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter17: Financial Statement Analysis
Section17.4: Analyzing Financial Statements Using Financial Ratios
Problem 1OYO
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