Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Textbook Question
Chapter 7, Problem 40BE
Quick ratio and
Consider the following data:
| COMPANY | A | B | C | D |
| Cash.......................................... | $ 9,200 | $ 6,000 | $2,000 | $10,600 |
| Short-term Investments............ | 7,200 | 2,400 | 1,400 | 5,500 |
| Net Current Receivables............ | 12,100 | 10,800 | 4,900 | 13,500 |
| Total Current Assets.................. | 32,500 | 22,600 | 8,700 | 31,500 |
| Current Liabilities...................... | 16,000 | 8,800 | 4,500 | 36,000 |
Requirements
- 1. Calculate the quick assets and the quick ratio for each company.
- 2. Calculate the current ratio for each company.
- 3. Which company should be concerned about its liquidity?
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179…
The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on
account):
3rd Quarter
14,500
2nd Quarter
4th Quarter
1st Quarter
11,500
Budgeted unit sales
12,500
13,500
The selling price of the company's product is $14 per unit. Management expects to collect 75% of sales in the quarter in which the
sales are made, 20% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts
receivable, all of which is expected to be collected in the first quarter, is $71,200.
The company expects to start the first quarter with 1,725 units in finished goods inventory. Management desires an ending finished
goods inventory in each quarter equal to 15% of the next quarter's budgeted sales. The desired ending finished goods inventory for
the fourth quarter is 1,925 units.
Required:
1. Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole.
2.…
Record each of these transactions
1 Cash………………………………………. 300,000
Capital Stock…………………………………………… 300,000
Issued capital stock at $60 per share
4 Diagnostic Equipment……………………250,000
Cash………………………………………………… 100,000
Notes Payable……………………………………… 150,000
Purchased equipment, paying part in cash and signing a note payable for the balance
12 Account Payable…………….......6,000
Cash…………………………………. $6,000
Paid account payable to Zeller Laboratories
19 surgical supplies……………………4,000
Accounts Payable……………………… $ 4,000
25 Cash…………………..80,000
Accounts Retrievable…………………….. 80,000
30 Dividends……………$50,000
Cash…………….. 500,000
ADDITIONAL REQUIREMENT FOR 3.2
Posting of transaction from General Journal to T-Accounts
Prepare trial…
Chapter 7 Solutions
Financial Accounting, Student Value Edition (5th Edition)
Ch. 7.A - Prob. 1SECh. 7.A - Prob. 2SECh. 7.A - Prob. 3AECh. 7.A - Prob. 4AECh. 7.A - Prob. 5BECh. 7.A - Prob. 6BECh. 7.A - Prob. 7APCh. 7.A - Prob. 8BPCh. 7 - Which duties should be segregated in the...Ch. 7 - Prob. 2DQ
Ch. 7 - Prob. 3DQCh. 7 - Why does the allowance method of accounting for...Ch. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - How would the net realizable value of Accounts...Ch. 7 - Prob. 9DQCh. 7 - Prob. 10DQCh. 7 - Prob. 1SCCh. 7 - Prob. 2SCCh. 7 - Prob. 3SCCh. 7 - Prob. 4SCCh. 7 - Prob. 5SCCh. 7 - Prob. 6SCCh. 7 - Prob. 7SCCh. 7 - Prob. 8SCCh. 7 - Prob. 9SCCh. 7 - Prob. 10SCCh. 7 - Prob. 11SCCh. 7 - Prob. 12SCCh. 7 - Prob. 1SECh. 7 - Prob. 2SECh. 7 - Prob. 3SECh. 7 - Prob. 4SECh. 7 - Prob. 5SECh. 7 - Prob. 6SECh. 7 - Prob. 7SECh. 7 - Prob. 8SECh. 7 - Prob. 9SECh. 7 - Prob. 10SECh. 7 - Prob. 11SECh. 7 - Prob. 12SECh. 7 - Prob. 13SECh. 7 - Prob. 14SECh. 7 - Prob. 15SECh. 7 - Quick ratio (Learning Objective 7) 510 min....Ch. 7 - Prob. 17SECh. 7 - Prob. 18AECh. 7 - Prob. 19AECh. 7 - Prob. 20AECh. 7 - Prob. 21AECh. 7 - Prob. 22AECh. 7 - Prob. 23AECh. 7 - Prob. 24AECh. 7 - Prob. 25AECh. 7 - Prob. 26AECh. 7 - Prob. 27AECh. 7 - Quick ratio and current ratio (Learning Objective...Ch. 7 - Prob. 29AECh. 7 - Prob. 30BECh. 7 - Prob. 31BECh. 7 - Prob. 32BECh. 7 - Prob. 33BECh. 7 - Prob. 34BECh. 7 - Aging of accounts receivable allowance method...Ch. 7 - Prob. 36BECh. 7 - Prob. 37BECh. 7 - Prob. 38BECh. 7 - Prob. 39BECh. 7 - Quick ratio and current ratio (Learning Objective...Ch. 7 - Prob. 41BECh. 7 - Prob. 42APCh. 7 - Prob. 43APCh. 7 - Prob. 44APCh. 7 - Prob. 45APCh. 7 - Prob. 46APCh. 7 - Accounting for notes receivable (Learning...Ch. 7 - Prob. 48APCh. 7 - Prob. 49BPCh. 7 - Prob. 50BPCh. 7 - Prob. 51BPCh. 7 - Prob. 52BPCh. 7 - Prob. 53BPCh. 7 - Prob. 54BPCh. 7 - Prob. 55BPCh. 7 - Continuing Exercise In this exercise, we continue...Ch. 7 - Prob. 1CPCh. 7 - Prob. 1CFSAPCh. 7 - Prob. 1EIACh. 7 - Prob. 2EIACh. 7 - Financial Analysis Purpose: To help familiarize...Ch. 7 - Industry Analysis Purpose: To help you understand...Ch. 7 - Prob. 1SBACh. 7 - Prob. 1WC
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