Working Capital and Short Term Liquidity Ratios Bell Company has a current ratio of 2.85 on December 31. On that date the company's current assets are as follows: Cash Short-term investments Accounts receivable (net) Inventory Prepaid expenses Current assets $31,400 52,000 169,000 220,000 11,600 $484,000 Bell Company's current liabilities at the beginning of the year were $135,000 and during the year its operating activities provided a cash flow of $50,000. a. What are the firm's current liabilities on December 31? Round answer to the nearest whole number. 0 b. What is the firm's working capital on December 31? Round answer to the nearest whole number. 0 c. What is the quick ratio on December 31? Round answer to 2 decimal places. 0 d. What is the Bell's operating-cash-flow-to-current-liabilities ratio? Round answer to 2 decimal places. 0

Working Capital and Short Term Liquidity Ratios Bell Company has a current ratio of 2.85 on December 31. On that date the company's current assets are as follows: Cash Short-term investments Accounts receivable (net) Inventory Prepaid expenses Current assets $31,400 52,000 169,000 220,000 11,600 $484,000 Bell Company's current liabilities at the beginning of the year were $135,000 and during the year its operating activities provided a cash flow of $50,000. a. What are the firm's current liabilities on December 31? Round answer to the nearest whole number. 0 b. What is the firm's working capital on December 31? Round answer to the nearest whole number. 0 c. What is the quick ratio on December 31? Round answer to 2 decimal places. 0 d. What is the Bell's operating-cash-flow-to-current-liabilities ratio? Round answer to 2 decimal places. 0

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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The most recent financial statements for Tran Company are shown here: Income Statement Sales Costs Taxable income Taxes (24%) Net income $44,900 36,200 $8,700 Maximum dollar increase 2,088 $6,612 Current assets Fixed assets Total Balance Sheet $18,620 69,000 $ 87,620 Long-term debt Equity Total $ 37,720 49,900 $ 87,620 Assets and costs are proportional to sales. The company maintains a constant 45 percent dividend payout ratio and a constant debt-equity ratio. What is the maximum dollar increase in sales that can be sustained assuming no new equity is issued? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Which assets depreciate?
The comparative temporary investments and inventory balances of a company follow: Current Year Previous Year Accounts payable $60,260 $46,000 Long-term debt 54,510 79,000 Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis? Amount of Change Increase/Decrease Percentage Accounts payable $fill in the blank 1 fill in the blank 3% Long-term debt $fill in the blank 4 fill in the blank 6%
Return on Assets Ratio and Asset Turnover Ratio Northern Systems reported the following financial data (in millions) in its annual report: Previous Year Current Year Net Income $9,050 $7,500 Net Sales 52,350 37,200 Total Assets 58,734 68,128 If the company’s total assets are $55,676 at the beginning of the previous year, calculate the company’s: (a) return on assets (round answers to one decimal place - ex: 10.7%) (b) asset turnover for both years (round answers to two decimal places) Previous Year Current Year a. Return on Assets Ratio Answer Answer b. Asset Turnover Ratio Answer Answer
Working Capital and Short Term Liquidity RatiosBell Company has a current ratio of 2.85 on December 31. On that date the company's current assets are as follows: Cash $16,400 Short-term investments 49,000 Accounts receivable (net) 169,000 Inventory 200,000 Prepaid expenses 11,600 Current assets $446,000 Bell Company's current liabilities at the beginning of the year were $137,000 and during the year its operating activities provided a cash flow of $55,000.a. What are the firm's current liabilities on December 31?Round answer to the nearest whole number.Answerb. What is the firm's working capital on December 31?Round answer to the nearest whole number.Answerc. What is the quick ratio on December 31? Round answer to 2 decimal places.Answerd. What is the Bell's operating-cash-flow-to-current-liabilities ratio? Round answer to 2 decimal places.Answer PreviousSave AnswersNext
Vertical Analysis of Balance Sheet Balance sheet data for Kwan Company on December 31, the end of two recent fiscal years, follow: Current Year Previous Year Current assets $308,140 $179,040 Property, plant, and equipment 576,520 522,200 Intangible assets 109,340 44,760 Current liabilities 228,620 134,280 Long-term liabilities 397,600 313,320 Common stock 99,400 104,440 Retained earnings 268,380 193,960 Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and stockholders' equity item as a percent of the total liabilities and stockholders' equity. If required, round percentages to one decimal place. Kwan CompanyComparative Balance SheetFor the Years Ended December 31 CurrentyearAmount CurrentyearPercent PreviousyearAmount PreviousyearPercent Current assets $308,140 fill in the blank 1% $179,040 fill in the blank 2% Property, plant, and equipment 576,520 fill…
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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
Total debt to total assets% ratio: ?? Round your answer to the nearest hundredth percent Return on equity% ratio: ?? Round your answer to the nearest hundredth percent Asset turnover ratio: ?? Round your answer to the nearest cent
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Quick Ratio Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years: Current Year Previous Year Current assets: Cash $487,000 $763,000 Accounts receivable 431,000 359,000 Inventory 266,000 303,000 Total current assets $1,184,000 $1,425,000 Current liabilities: Current portion of long-term debt $86,000 $77,000 Accounts payable 173,000 153,000 Accrued and other current liabilities 281,000 280,000 Total current liabilities $540,000 $510,000 a. Determine the quick ratio for December 31 of both years. If required, round your answers to one decimal place. Quick Ratio Previous year: Current year: b. How did the quick ratio change between the two balance sheet dates?