Use the following information for Transylvania Railroad: Long-term debt ratio: 0.5 • Times-interest-earned: 8.0 Current ratio: 1.5 • Quick ratio: 1.0 ⚫ Cash ratio: 0.3 • Inventory turnover: 4.9 • Receivables collection period: 73.0 days • Tax rate = 0.40 Work out the missing entries. For this problem, use the following definitions: Inventory turnover = COGS ÷ average inventory Receivables collection period = average receivables (sales + 365). Complete this question by entering your answers in the tabs below. Balance Sheet Income Statement Work out the missing entries. Note: Enter your answers in millions. Do not round intermediate calculations. Round your answers to 2 decimal places. Balance Sheet ($ in millions) December 2020 December 2019 Cash 21.00 Accounts receivable 34.10 Inventory 27.50 Total current assets 82.60 Fixed assets (net) 111.00 Total 193.60 Notes payable 31.00 20.10 Accounts payable 26.00 15.10 Total current liabilities 35.20 Long-term debt 37.90 Equity 120.50 Total 236.00 193.60
Use the following information for Transylvania Railroad: Long-term debt ratio: 0.5 • Times-interest-earned: 8.0 Current ratio: 1.5 • Quick ratio: 1.0 ⚫ Cash ratio: 0.3 • Inventory turnover: 4.9 • Receivables collection period: 73.0 days • Tax rate = 0.40 Work out the missing entries. For this problem, use the following definitions: Inventory turnover = COGS ÷ average inventory Receivables collection period = average receivables (sales + 365). Complete this question by entering your answers in the tabs below. Balance Sheet Income Statement Work out the missing entries. Note: Enter your answers in millions. Do not round intermediate calculations. Round your answers to 2 decimal places. Balance Sheet ($ in millions) December 2020 December 2019 Cash 21.00 Accounts receivable 34.10 Inventory 27.50 Total current assets 82.60 Fixed assets (net) 111.00 Total 193.60 Notes payable 31.00 20.10 Accounts payable 26.00 15.10 Total current liabilities 35.20 Long-term debt 37.90 Equity 120.50 Total 236.00 193.60
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:Use the following information for Transylvania Railroad:
Long-term debt ratio: 0.5
• Times-interest-earned: 8.0
Current ratio: 1.5
• Quick ratio: 1.0
⚫ Cash ratio: 0.3
• Inventory turnover: 4.9
• Receivables collection period: 73.0 days
• Tax rate = 0.40
Work out the missing entries. For this problem, use the following definitions:
Inventory turnover = COGS ÷ average inventory
Receivables collection period = average receivables (sales + 365).
Complete this question by entering your answers in the tabs below.
Balance Sheet
Income
Statement
Work out the missing entries.
Note: Enter your answers in millions. Do not round intermediate calculations. Round your answers to 2 decimal places.
Balance Sheet
($ in millions)
December 2020
December 2019
Cash
21.00
Accounts receivable
34.10
Inventory
27.50
Total current assets
82.60
Fixed assets (net)
111.00
Total
193.60
Notes payable
31.00
20.10
Accounts payable
26.00
15.10
Total current liabilities
35.20
Long-term debt
37.90
Equity
120.50
Total
236.00
193.60
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