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Windswept Woodworks, Incorporated Input Data (millions of dollars) Accounts payable Accounts receivable Accumulated depreciation Cash & equivalents Common stock Cost of goods sold Depreciation expense Common stock dividends paid Interest expense Inventory Addition to retained earnings Long-term debt Notes payable Gross plant & equipment Retained earnings Sales Other current liabilities Tax rate Market price per share-year end Number of shares outstanding Year 2 Year 1 562 1,406 6,872 350 1,310 1,530 ? 494 940 6,742 238 1,230 n.a. n.a. ? 170 1,140 602 938 260 10,380 3,188 3,048 146 21% n.a. $ 21.80 $ 19.50 500 million 500 million n.a. n.a. 1,136 n.a. 846 410 10,120 2,586 n.a. 126 (For all requirements, round your answers to 2 decimal places.) b. Average collection period (Assume that the accounts receivable balance was 980 on December 31 of the previous year and that year 1 sales were 2,748.) (Use 365 days in a year.) Year 2 ACP: b. Current ratio Year 2 Current ratio: c. Quick ratio Year 2 Quick ratio:

Windswept Woodworks, Incorporated Input Data (millions of dollars) Accounts payable Accounts receivable Accumulated depreciation Cash & equivalents Common stock Cost of goods sold Depreciation expense Common stock dividends paid Interest expense Inventory Addition to retained earnings Long-term debt Notes payable Gross plant & equipment Retained earnings Sales Other current liabilities Tax rate Market price per share-year end Number of shares outstanding Year 2 Year 1 562 1,406 6,872 350 1,310 1,530 ? 494 940 6,742 238 1,230 n.a. n.a. ? 170 1,140 602 938 260 10,380 3,188 3,048 146 21% n.a. $ 21.80 $ 19.50 500 million 500 million n.a. n.a. 1,136 n.a. 846 410 10,120 2,586 n.a. 126 (For all requirements, round your answers to 2 decimal places.) b. Average collection period (Assume that the accounts receivable balance was 980 on December 31 of the previous year and that year 1 sales were 2,748.) (Use 365 days in a year.) Year 2 ACP: b. Current ratio Year 2 Current ratio: c. Quick ratio Year 2 Quick ratio:

FINANCIAL ACCOUNTING
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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Use the information in the table below to calculate the following ratios for Windswept Woodworks for year 1 and year 2. Windswept Woodworks, Incorporated Input Data (millions of dollars) Accounts payable Accounts receivable Accumulated depreciation Cash & equivalents Common stock Cost of goods sold Depreciation expense Common stock dividends paid Interest expense Inventory Addition to retained earnings Long-term debt Notes payable Gross plant & equipment Retained earnings Sales Other current liabilities Tax rate Market price per share-year end Number of shares outstanding b. Current ratio Year 2 Current ratio: Year 2 Year 1 562 1,406 6,872 350 c. Quick ratio Year 2 Quick ratio: 494 940 6,742 238 1,230 n.a. n.a. n.a. n.a. 1,136 n.a. 846 410 10,120 2,586 n.a. 126 (For all requirements, round your answers to 2 decimal places.) b. Average collection period (Assume that the accounts receivable balance was 980 on December 31 of the previous year and that year 1 sales were 2,748.) (Use 365 days in a year.) Year 2 ACP: 1,310 1,530 ? ? 170 1,140 602 938 260 10,380 3,188 3,048 146 21% n.a. $ 21.80 $ 19.50 500 million 500 million
Transcribed Image Text:Use the information in the table below to calculate the following ratios for Windswept Woodworks for year 1 and year 2. Windswept Woodworks, Incorporated Input Data (millions of dollars) Accounts payable Accounts receivable Accumulated depreciation Cash & equivalents Common stock Cost of goods sold Depreciation expense Common stock dividends paid Interest expense Inventory Addition to retained earnings Long-term debt Notes payable Gross plant & equipment Retained earnings Sales Other current liabilities Tax rate Market price per share-year end Number of shares outstanding b. Current ratio Year 2 Current ratio: Year 2 Year 1 562 1,406 6,872 350 c. Quick ratio Year 2 Quick ratio: 494 940 6,742 238 1,230 n.a. n.a. n.a. n.a. 1,136 n.a. 846 410 10,120 2,586 n.a. 126 (For all requirements, round your answers to 2 decimal places.) b. Average collection period (Assume that the accounts receivable balance was 980 on December 31 of the previous year and that year 1 sales were 2,748.) (Use 365 days in a year.) Year 2 ACP: 1,310 1,530 ? ? 170 1,140 602 938 260 10,380 3,188 3,048 146 21% n.a. $ 21.80 $ 19.50 500 million 500 million
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