The current asset section of Guardian Consultant's balance sheet consists of cash, accounts receivable, and prepaid expenses. The balance sheet reported the following: cash, $1,300,000; prepaid expenses, $360,000; long-term assets, $2,400,000; and shareholders' equity, $2,500,000. The current ratio at the end of the year was 2.0 and the debt to equity ratio was 1.4.

The current asset section of Guardian Consultant's balance sheet consists of cash, accounts receivable, and prepaid expenses. The balance sheet reported the following: cash, $1,300,000; prepaid expenses, $360,000; long-term assets, $2,400,000; and shareholders' equity, $2,500,000. The current ratio at the end of the year was 2.0 and the debt to equity ratio was 1.4.

Name: cesThe current asset section of Guardian Consultant's balance sheet c
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: cesThe current asset section of Guardian Consultant's balance sheet consists of cash, accounts receivable, and prepaid expenses. Thebalance sheet reported the following: cash, $1,300,000; prepaid expenses, $360,000; long-term assets, $2,400,000; and

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The balance sheet showed the following: Total current assets $3,250, accounts payable $470, 8% notes…

A: Current assets = $3250 Accounts payables = $470 Accrued wages = $180

Q: The following data are taken from the balance sheet at the end of the current year. Cash Accounts…

A: The current ratio is a liquidity ratio used to measure a company's ability to pay short-term or…

Q: Please calculate the NOWC.

A: Information Provided: Cash Balance = $200,000 Accounts Balance = $500,000 Inventory Balance =…

Q: Using the following facts to calculate the Current Ratio, and the Debt Ratio: Ending Total Assets =…

A: The ratio analysis helps to analyze the financial statements of the business on the basis of various…

Q: Consider the following financial information and answer the questions that follow: Sales : $250,000…

A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Solve the following: The financial statements of Iowa Mining and Manufacturing Company (3M) report…

A: The accounts receivable turnover ratio is an accounting calculation used to measure how effectively…

Q: Based on these amounts, calculate the current ratio and the acid-test ratio for The Copper Grill.…

A: Current Ratio is the company's capacity to bear short term debt due for less than or equal to year.…

Q: BSO, Inc., has assets of $600,000 and liabilities of $450,000, resulting in a debt-to-assets ratioof…

A: Debt-to-assets ratio = Total liabilities / Total assets

Q: Under Armour has the following current assets: cash, $102 million; receivables, $94 million;…

A: We have the following information: Cash: $102 million Receivables: $94 million Inventory: $182…

Q: Bronco Electronics' current assets consist of cash, short-term investments, accounts receivable, and…

A: Introduction:- Assets are resources (property) presented in the balance sheet because for it an…

Q: Given the information below, answer questions from #17 to #21. Accounts Receivable $20,000 ($30,000…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: According to the balance sheet of Free Inc, at the end of the 2020 fiscal year, the cash balance is…

A: The incremental difference between a company's rate of return (RoR) and its cost of capital is…

Q: Calculate the quick assets (in $) and acid test ratio for the given company. Round ratios to the…

A: The Acid test ratio is the ratio that measures the ability of the company to pay off its current…

Q: Consider the following financial information and answer the questions that follow: Sales : $250,000…

A: The working capital is computed by deducting the total current liabilities from the total current…

Q: Vaughn Company makes and sells artistic frames for pictures. The controller is responsible for…

A: Production budget :— This budget is prepared to estimate the number of units to be produced for…

Q: Southern Style Realty has total assets of $485,390, net fixed assets of $250,000, current…

A: Formula: Total debt ratio = Total debts / Total Assets

Q: Prepare a 2018 balance sheet for Rogers Corp. based on the following information: Cash $490,000;…

A: Common Stock - Common Stock is the shares issued to the shareholders. There are two types of stock…

Q: QueensLand Ltd. had the following operating results for 2021: sales = $20,200; cost of goods sold =…

A: Operating cash flow : O C F is the amount of cash generated from the normal business operations of…

Q: Crafty Inc. reported the following financial data. Sales, $180,000; operating expenses $160,000;…

A: Asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue…

Q: This is the financial position of Hospital AMIH, Inc. regarding the repayment of its debts. These…

A: Solution: Introduction: Cash flow to total debt ratio represents a business organization's flow of…

Q: The most current balance statement for Charger Company shows total assets of $27,000,000, total…

A: A debt to net worth ratio ratio computed by dividing the organization's total liabilities by its…

Q: For the year just completed, Hanna Company had net income of $45,000. Balances in the company's…

A: The cash flows from operating activities include the cash flows from day to day-to-day operations.…

Q: Jones Corp. had a total asset turnover of 4.0 in 2019 and had sales of $10.0 million. If the…

A: Turnover = $ 10,000,000 Total asset turnover = 4.0 Total assets = Turnover/Total asset turnover…

Q: The balance sheet for Shaver Corporation reported the following: cash, $7,500; short-term…

A: Introduction: The debt-to-asset ratio is an essential leverage ratio that is used to calculate the…

Q: Required: Prepare a December 31, 2021, balance sheet for the Cadux Candy Company. (Enter your…

A: The balance sheet, also known as the statement of financial position, is the third general-purpose…

Q: Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years:…

A: Quick Ratio = Total Current Asset - Inventory - Prepaid ExpensesTotal Current Liabilities

Q: Cold Duck Manufacturing Inc. has the following end-of-year balance sheet: Cold Duck Manufacturing…

A: Additional Funds Needed (AFN) is a tool for estimating how much money a business will need in the…

Q: JPJ Corp has sales of $1.00 million, accounts receivable of $50,000, total assets of $5.00 million…

A: The ratio analysis refers to the calculation of various ratios based on the financial statements of…

Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

Topic Video

Question

ces
The current asset section of Guardian Consultant's balance sheet consists of cash, accounts receivable, and prepaid expenses. The
balance sheet reported the following: cash, $1,300,000; prepaid expenses, $360,000; long-term assets, $2,400,000; and
shareholders' equity, $2,500,000. The current ratio at the end of the year was 2.0 and the debt to equity ratio was 1.4.
Required:
Determine the following amounts and ratios:
Note: Round your "The acid-test ratio" answer to 1 decimal place.
1. Current liabilities
2. Long-term liabilities
3. Accounts receivable
4. The acid-test ratio

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: solution

Step 2: Solution

Step 3: Solution

Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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

Extracts from the balance sheet of Atlantis Inc. are as follows: 2018 Assets Current Assets: Cash and Cash Equivalents 30,000 Accounts Receivable, Net 65,000 Merchandise Inventory 50,000 Total Current Assets 145,000 Long-Term Investments 150,000 Property, Plant, and Equipment, Net 250,000 Total Assets 545,000 Total Current Liabilities 150,000 Compute the acid test ratio.
Southern Style Realty has total assets of $485,390, net fixed assets of $250,000, current liabilities of $23,456, and long-term liabilities of $148,000. What is the total debt ratio? Can you provide the formula?
This is the financial position of Hospital AMIH, Inc. regarding the repayment of its debts. These are the most relevant data of its financial statements: Total revenues $ 245,000 Total expenses $ 145,000 Depreciation $ 10,000 Changes in receivable accounts +$ 50,000 Changes in inventory ($ 20,000) Changes in accounts payable ($ 25,000) Total current liabilities $ 30,000 Total long-term debt $ 45,000 cash flow (total margin + depreciation expense) + interest expense/principal payment + interest expense Calculate the operating cash flow.
Art Supplies, Inc. had the following asset account balances: Cash, $60,000; Short-term Investments, $120,000; Accounts Receivable, $70,000; and Inventory, $205,000. Current liabilities amounted to $325,000. What is Art Supplies' quick ratio?
According to the balance sheet of Free Inc, at the end of the 2020 fiscal year, the cash balance is $200,000, account available balance is $500,000, inventory balance is $750,000; the net fixed asset is $1,500,000. On the other side, the account payable is $250,000, the accrual $40,000, the notes payable is $300,000, long-term debt is $510,000, common stock is $1,200,000, retained earnings is $650,000. The net income is $900,000; the interest payment is $45,600; the tax rate is 25%. If the sales is $10,000,000, what is the operating margin?b. 13.26%c. 11.45%d. 10.66%
The following data apply to the next six problems. Consider Fisher & Company's financial data as follows (unit: millions of dollars except ratio figures):Cash and marketable securities $100Fixed assets $280Sales $1,200Net income $358Inventory $180Current ratio 3.2Average collection period 45 daysAverage common equity $500 Calculate the amount of the long-term debt.(a) $134 (b) $500(c) $74 (d) $208
Determine the amount of long-term debt for ABC Co. using the following balance sheet information: cash balance of $24,429, accounts payable of $97,423, common stock of $400,517, retained earnings of $500,749, inventory of $207,068, other assets equal to $77,098, net plant and equipment of $706,191, short-term notes payable of $30,000, and accounts receivable of $142,586.
Nelson Ltd reported a total asset of $600,000, and a net profit of $90,000, while their current liabilities stood at $320,000 for 2021 financial period. If current assets are 40% of the total assets, what is the current ratio for Nelson Ltd? 0.75 1.88 0.53 1.33
Sectors, Inc., has an EBIT of $7,221,643 and interest expense of $611,800. Its depreciation for the year is $1,434,500. What is its cash coverage ratio?
The balance sheet and income statement for Cruise Corporation are as follows: Balance Sheet as of December 31, 2020 ASSETS LIABILITIES & EQUITY Cash & marketable securities $2,000 Accounts payable $30,000 Accounts Receivable 35,000 Taxes payable 9,000 Inventory 15,000 Short-term borrowings 12,000 Total current assets $52,000 Total current liabilities $51,000 Net P,P & E $448,000 Long-term debt…