Large Land Photo Shop has asked you to determine whether the companys ability to pay current liabilities
Question:
Compute the following ratios for 2015 and 2014, and evaluate the companys ability to pay its current liabilities and total liabilities:
a. Current ratio
b. Cash ratio
c. Acid-test ratio
d. Debt ratio
e. Debt to equityratio
Transcribed Image Text:
2015 2014 Cash Short-term Investments Net Accounts Receivables Merchandise Inventory Total Assets Total Current Liabilities Long-term Note Payable Income From Operations Interest Expense 58,000 57,000 31,000 110,000 132,000 247,000 297,000 585,000 535,000 255,000 222,000 46,000 48,000 180,000 153,000 52,000 39,000
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2015 2014 a Total current assets Total current liabilities 446000 255000 175 ...View the full answer
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Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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