canvas.unl.edu x:, Connect M Need KRNU engineers for b/X·D Secure https://newcon
ID: 2562144 • Letter: C
Question
canvas.unl.edu x:, Connect M Need KRNU engineers for b/X·D Secure https://newconnect.mheducation.com/flow/connect.html Saved CHAPTER 9 Homework 8 Following is the balance sheet of Solomon Company for 2018: SOLOMON COMPANY Balance sheet sets 1.5 points Mazketable securities Accounts receivable Inventory Property and equipment Accumalated depzeciation Total asseta s 14,800 7,540 13,340 10,650 174,000 (12,600) - $207,730 Liabilieies and Stockholders Equity Accounts payable Current notes payable Hortgage Bonds payable Comnon stock $ 8,000 3,640 4, 600 21,960 113,900 55,630 $207,730 payable Print Total liabilitses and stockholders' equity Rederences The average number of common stock shares outstanding during 2018 was 880 shares. Net income fa Required Compute each of the following: (Round your answers to 2 decimal places) a. Current ratio b. Eamings per share per share Quick (acid-los) rabo d. Retum on investment e. Retum on equity Debt to equity raio Movie Series Works....docx 3Explanation / Answer
Answer a. Current Ratio = Current Assets / Current Liabilities Current Assets Cash 14,800 Marketable Securities 7,540 Accounts Receivable 13,340 Inventory 10,650 Total Current Assets 46,330 Current Liabilities Accounts Payable 8,000 Current Notes Payable 3,640 Total Current Liabilities 11,640 Current Ratio = $46,330 / $11,640 Current Ratio = 3.98 : 1 (Approx.) Answer b. Earning Per Share = Net Income / No. Of Equity Shares As Net Income is not vsible in the sheet, so caanot calculate the ratio. Answer c. Quick Ratio = Quick Assets / Current Liabilities Quick Assets Cash 14,800 Marketable Securities 7,540 Accounts Receivable 13,340 Total Quick Assets 35,680 Current Liabilities Accounts Payable 8,000 Current Notes Payable 3,640 Total Current Liabilities 11,640 Quick Ratio = $35,680 / $11,640 Quick Ratio = 3.07 : 1 (Approx.) Answer d. Return on Investment = Net Profit / Average Assets As Net Income is not vsible in the sheet, so caanot calculate the ratio. Answer e. Return on equity = Net Income / Shareholder Equity As Net Income is not vsible in the sheet, so caanot calculate the ratio. Answer f. Debt to Equity Ratio = Total Liability / Total Equity Total Liability Accounts Payable 8,000 Current Note Payable 3,640 Mortgage Payable 4,600 Bonds Payable 21,960 Total Liability 38,200 Total Equity Common Stock 113,900 Retained Earnings 55,630 Total Equity 169,530 Debt to Equity Ratio = $38,200 / $169,530 Debt to Equity Ratio = 22.53% (Approx.)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.