(ASSETS, LIABILITIES & STOCKHOLDERS\' EQUITY) Cash 490 Accounts payable 22,300 M
ID: 2632333 • Letter: #
Question
(ASSETS, LIABILITIES & STOCKHOLDERS' EQUITY)
Cash 490 Accounts payable 22,300
Marketable securities 950 Notes payable 47,300 Accounts receivable 24,900
Total Current Liabilities 69,600 Inventories 45,300 Long-term Debt 22,950
Total Current Assets 71,640 Net Fixed Assets 77,900 Common stock equity 31,800
TOTAL ASSETS 149,540 Retained earnings 25,190 Total Stockholders' Equity 56,990
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 149,540
------------------------------------------------------------------------------------------------------------------------------------
Sales revenue $159,500
Less: Cost of good sold 106,300
Gross Profit $53,200
Less: Operating expenses
General and administrative $25,300
Depreciation expenses 10,720
Total Operating Expense 36,020
Operating Profits $17,180
Less: Interest expense 5,900
Net Profits Before Taxes $11,280
Less: Taxes 4,310
Earnings Avail. for Common Stockholders $6,970
Use the Balance Sheet and Income Statement to answer questions 16-23
16.) Current Ratio equals
a. 1.62
b. 1.03
c. 0.97
d. 0.38
17.) Quick Ratio equals
a. 1.62
b. 1.03
c. 0.97
d. 0.38
18.) Average collection period equals
a. 56.98
b. 0.16
c. 0.21
d. 76.57
19.) Average payment period equals (assume all purchases made in calendar year)
a. 56.98
b. 0.16
c. 0.21
d. 76.57
20.) Debt ratio equals
a. 0.371
b. 1.624
c. 1.616
d. 0.619
21.) Times interest earned equals
a. 1.18
b. 2.91
c. 27.03
d. 0.34
22.) Operating profit equals
a. 0.071
b. 0.334
c. 0.108
d. 0.044
23.) Net profit equals
a. 0.071
b. 0.334
c. 0.108
d. 0.044
Explanation / Answer
Use the Balance Sheet and Income Statement to answer questions 16-23
16.) Current Ratio equals =
b. 1.03 -- Current assets / current liabilities = 1.03.
17.) Quick Ratio equals
d. 0.38 (Current Assets - Inventory) / Current liabilities = 0.3
18.) Average collection period equals
a. 56.98 Total average receivables / credit sales
19.) Average payment period equals (assume all purchases made in calendar year)
b. 0.16 Avg payment period = Accounts payable / (cost of sales / day)
20.) Debt ratio equals
d. 0.619
Total Debt / Total Asssets = ($69600 + $22950) / $149,540
21.) Times interest earned equals
b. 2.91
EBIT / Interest Expenses
22.) Operating profit equals
c. 0.108 ----> Operating profit / Total Sales
23.) Net profit equals
a. 0.071 Net profit / Sales
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.