Assume a company has the following account balances: Cash ($5,000); Accounts Rec

Question

Assume a company has the following account balances: Cash ($5,000); Accounts Receivable ($11,000); Inventory ($24,000); Accounts Payable ($6500) Acccruals ($2000); Long term Debt ($25000). What is the firm's QUICK RATIO? a.4.7 b. 1.19 c. 1.88

PQR, Inc. uses $ 1.2 Million in Total Assets to support it current operations. Its capital structure is $ 700,000 Debt and $ 150,000 in Common Stock and $ 350,00 in Retained Earmings. What is the firm's EQUITY MULTIPLIER?

a.1.4 b.2.4 c.8 d.1.82

Madrigal, Inc. had the following Income Statement for the period ending December 31, 2012:
SALES 4,507
Less: CGS 2,333
GROSS PROFIT 1,874
Less: DEPN 952
EBIT 922
Less: INTEREST 196
EBT 726
Less: TAXES @ 35% 254
NI 472
What was its OPERATING CASH FLOW (OCF) for the period?Answer

Explanation / Answer

a) multiply each aging amount by the % estimated to be uncollectible - the total of these amounts is the estimated bad debts b) the allowance account has a DR balance, so the Bad Debts Expense entry needs to be the amount you get from a) plus 8,000 c) DR Allowance for Uncollectible Accounts, CR Accounts Receivable d) DR Accounts Receivable CR Allowance For Uncollectible Accounts, DR Cash CR Accounts Receivabl

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