using this info please answer : Crowley Building Supply sells various building m

Question

using this info please answer :

Crowley Building Supply sells various building materials to retail outlets. The company has just approached Sycamore State Bank requesting a $300,000 loan to strengthen the Cash account and to pay certain pressing short-term obligations. The company's financial statements for the most recent two years follow: Crowley Building Supply Comparative Balance Sheets This Year Last Year Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses 1,500 476,000 948,560 19,500 S 56,500 141,500 19,500 288,000 588,530 26,500 1,502,060 1,641,620 1,064,030 1,546,580 Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity $ 3,143,680$ 2,610,610 Liabilities Current liabilities Bonds payable, 8% $ 806,000 616,500 $ 445,000 616,500 Total liabilities 1,422,500 1,061,500 Stockholders' equity: Preferred stock, $25 par, 7% Common stock, $10 par Retained earnings 318,000 510,000 893,180 318,000 510,000 721,110 Total stockholders' equity 1,721,180 1,549,110 Total liabilities and stockholders' Equity $ 3,143,680$ 2,610,610

Explanation / Answer

d

e

Note:

a

Percentage calculated taking total asset and total liabilities and stockholders equity values for each year as base

b

Formula Used Average Collection period= 365/Average Collection Turnover Average Collection Turnover= Sales Revenue/Avg Accounts Receivable

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