Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter4: Balance Sheet: Presenting And Analyzing Resources And Financing
Section: Chapter Questions
Problem 14E
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Question
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![balance sheets
Assets
Cash
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
Total assets
Liabilities and Equity
Current liabilities
Long-term notes payable
Common stock, $5 par value
Retained earnings
Total liabilities and equity
Problem 13-5A (Algo) Part 1
$ 19,500
37,400
84,640
5,900
350,000
$ 497,440
$ 33,000
56,400
134,500
6,900
304,400
$ 535,200
$ 68,340
86,800
190,000
152,300
$ 497,440 $ 535,200
$ 91,300
115,000
206,000
122,900
statement
Sales
Cost of goods sold
Interest expense
Income tax expense
Net income
Basic earnings per share
Cash dividends per share
Beginning-of-year balance sheet data
Accounts receivable, net
Merchandise inventory
Total assets
Common stock, $5 par value
Retained earnings
Required:
1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) invent
sales in inventory, and () days' sales uncollected.
Note: Do not round intermediate calculations.
1b. Identify the company you consider to be the better short-term credit risk.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F53bb252e-95bd-4188-b6b1-01b60f985245%2Fd3e4b81a-3aff-4a8f-abea-bd1f11ca1454%2Fizeiogj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:balance sheets
Assets
Cash
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
Total assets
Liabilities and Equity
Current liabilities
Long-term notes payable
Common stock, $5 par value
Retained earnings
Total liabilities and equity
Problem 13-5A (Algo) Part 1
$ 19,500
37,400
84,640
5,900
350,000
$ 497,440
$ 33,000
56,400
134,500
6,900
304,400
$ 535,200
$ 68,340
86,800
190,000
152,300
$ 497,440 $ 535,200
$ 91,300
115,000
206,000
122,900
statement
Sales
Cost of goods sold
Interest expense
Income tax expense
Net income
Basic earnings per share
Cash dividends per share
Beginning-of-year balance sheet data
Accounts receivable, net
Merchandise inventory
Total assets
Common stock, $5 par value
Retained earnings
Required:
1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) invent
sales in inventory, and () days' sales uncollected.
Note: Do not round intermediate calculations.
1b. Identify the company you consider to be the better short-term credit risk.
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