Account balances at the beginning of the year were: accounts receivable, $25,000; and inventory, $60,000. All sales were on account.Required:Compute the following financial data and ratios:1. Working capital.2. Current ratio. (Round your answer to 1 decimal place.)3. Acid-test ratio. (Round your answer to 2 decimal places.)4. Debt-to-equity ratio. (Round your answer to 2 decimal places.)5. Times interest earned ratio. (Round your answer to 2 decimal places.)6. Average collection period. (Use 365 days in a year. Round your answer to 1 decimal place.)7. Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.)8. Operating cycle. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.)1. Working capital2. Current ratio3. Acid-test ratio4. Debt-to-equity ratio5.Times interest earned ratio6. Average collection period7. Average sale period8. Operating cycledaysdaysdays The financial statements for Castile Products, Inc., are given below:Castile Products, Inc.Balance SheetDecember 31AssetsCurrent assets:$ 6,50035,00070,000CashAccounts receivable, netMerchandise inventoryPrepaid expensesTotal current assets3,500115,000185,000Property and equipment, netTotal assets$300,000Liabilities and Stockholders' EquityLiabilities:$ 50,00080,000Current liabilitiesBonds payable, 10%Total liabilitiesStockholders' equity:Common stock, $5 par valueRetained earningsTotal stockholders' equity130,00030,000140,000170,000Total liabilities and stockholders' equity$300,000Castile Products, Inc.ncome StatementFor the Year Ended December 31Sales$420,000292,500127,500Cost of goods soldGross marginSelling and administrative expensesNet operating incomeInterest expense89,50038,0008,00030,000Net income before taxesIncome taxes (30%)9,000$ 21,000Net incomeAccount balances at the beginning of the year were: accounts receivable, $25,000; and inventory, $60,000. All sales were on account.

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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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A company has $1,364 in inventory, $4,809 in net fixed assets, $652 in accounts receivable, $290 in cash, $610 in accounts payable, and $5,404 in equity. What is the company's long-term debt? Multiple Choice O $1,711 $1,138 O$1,280 $1,669
Wichita, Inc. reported the following amounts on its financial statements prepared as of the end of the current accounting period: Revenues Expenses Net income Current assets; Long-term assets Total assets Current liabilities Long-term liabilities Total liabilities. Common stock Retained earnings Total equity Total liabilities and equity What is the company's debt-to-assets ratio? $200,000 180,000 $50,000 150,000 $ 20,000 80,000 $ 40,000 60,000 $ 20,000 $200,000 100,000 100,000 $200,000
WD Corporation reports the following year-end balance sheet data. The company's debt-to-equity ratio equals: Cash $ 42,000 Current liabilities $ 77,000 Accounts receivable 57,000 Long-term liabilities 28,000 Inventory 62,000 Common stock 102,000 Equipment 147,000 Retained earnings 101,000 Total assets $ 308,000 Total liabilities and equity $ 308,000
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