Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 8, Problem 8.6E
Exercise 8.6
Review exercise-calculate net income At the beginning of the current fiscal year, the
Required:
Calculate net income or loss for the year using the same format as shown in Exercise 8.5.
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Current Position Analysis
The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
$446,900
$372,400
Marketable securities
517,400
419,000
Accounts and notes receivable (net)
211,700
139,600
Inventories
1,071,800
807,000
Prepaid expenses
552,200
516,000
Total current assets
$2,800,000
$2,254,000
Current liabilities:
Accounts and notes payable
(short-term)
$324,800
$343,000
Accrued liabilities
235,200
147,000
Total current liabilities
$560,000
$490,000
a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
Current Year
Previous Year
1. Working capital
$fill in the blank 1
$fill in the blank 2
2. Current ratio
fill in the blank 3
fill in the blank…
Current Position Analysis
The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
$506,200
$384,000
Marketable securities
586,100
432,000
Accounts and notes receivable (net)
239,700
144,000
Inventories
928,000
702,700
Prepaid expenses
478,000
449,300
Total current assets
$2,738,000
$2,112,000
Current liabilities:
Accounts and notes payable
(short-term)
$429,200
$448,000
Accrued liabilities
310,800
192,000
Total current liabilities
$740,000
$640,000
a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
Current Year
Previous Year
1. Working capital
$fill in the blank 1
$fill in the blank 2
2. Current ratio
fill in the blank 3
fill in the blank 4…
Current position analysis
The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years:
Current Year Previous Year
Current assets:
Cash
$368,200
$281,600
Marketable securities
126,400
316,000
Accounts and notes receivable (net)
174,400
105,600
Inventories
639,500
402,600
Prepaid expenses
129,500
257,400
Total current
$1,930,000
$1,364,000
Current liabilities:
Accounts and notes payable (short-term)
$295,000
$300,000
Accrued labies
Total current liabilities
214,200
$510,000
132,000
$640,000
a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
1. Working capital
2. Current ratio
3. Quick ratio
b. The quidity of Nilo has
result of an
Current Year
Previous Year
from the preceding year to the current year. The working capital, current ratio, and quick ratio have all
Most of these changes are the
in current assets relative to current liabilities.
Chapter 8 Solutions
Accounting: What the Numbers Mean
Ch. 8 - Prob. 8.1MECh. 8 - Mini-Exercise 8.2 LO 2 Preferred stock-calculate...Ch. 8 - Prob. 8.3MECh. 8 - Mini-Exercise 8.4 LO 6 Treasury stock transactions...Ch. 8 - Prob. 8.5ECh. 8 - Exercise 8.6 Review exercise-calculate net income...Ch. 8 - Prob. 8.7ECh. 8 - Exercise 8.8 Review exercise-calculate retained...Ch. 8 - Prob. 8.9ECh. 8 - Prob. 8.10E
Ch. 8 - Prob. 8.11ECh. 8 - Prob. 8.12ECh. 8 - Prob. 8.13ECh. 8 - Prob. 8.14ECh. 8 - Exercise 8.15 LO 3 Dividend dates-market price...Ch. 8 - Exercise 8.16 LO 3 Ex-dividend date-market price...Ch. 8 - Prob. 8.17ECh. 8 - Prob. 8.18ECh. 8 - Prob. 8.19ECh. 8 - Prob. 8.20ECh. 8 - Prob. 8.21ECh. 8 - Prob. 8.22ECh. 8 - Prob. 8.23PCh. 8 - Prob. 8.24PCh. 8 - Prob. 8.25PCh. 8 - Prob. 8.26PCh. 8 - Prob. 8.27PCh. 8 - Problem 8.28 LO 1, 2, 4, 6 Transaction...Ch. 8 - Problem 8.29 LO 1, 2, 4, 6 Transaction...Ch. 8 - Problem 8.30 LO 1. 2, 4, 6 Transaction...Ch. 8 - Prob. 8.31PCh. 8 - Prob. 8.32PCh. 8 - Prob. 8.33CCh. 8 - Prob. 8.34CCh. 8 - Prob. 8.35CCh. 8 - Case 8.36 LO 1, 2, 7 Capstone analytical review of...
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