4)

What are liquidity measures?

Choose two ratios that assist in the determination of these measures.

(show the answers for both year as well as the formula) - (hint see page 360-361 of text)

2010

2009

Formulas

Ratio #1

Ratio #2

Newton Inc Balance Sheet Assets Current Assets: Cash and Equivalents Accounts Receivable, Net inventory Prepaid Expenses and other Current Assets Total Current Assets Property and Equipment, Net Other Assets Total Assets Liabilities and Stockholders' Equity Current Liabilities: Current Maturities of Long Tee rm Debt Accrued Other Accounts Payable Accrued Expenses Total Current Liabilities Long-Term Debt. Net of Cument Maturities Accrued other Long Term Total Li abilities Shareholders' Equity: Common Stock (.50 par) Retained Earnings Less: Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity Statement of Retained Earnings for the Year Ended 2009 Beginn ing Retained Earnings. January Plus Net Income Less Divid ends Ending Retained Earnings 12/31/09 Statement of Retained Earnings for the Year Ended 2010 Beginning Retained Earnings, January 1 Plus Net Income Less Divid ends Ending Retained Earnings 12/31/10 12/31/2010 12/31/2010 12131/2009 1,389.781 500.000 350.000 350.000 475.000 400,000 27.500 27,500 2,242.28 1,277,500 1.179.000 ,279.000 00.000 00.000 3,621.28 686.2 485.000 26.842 27.842 350.000 250.000 27.500 27.500 1.090.553 790.342 475.000 45.000 45.000 1.1 35.554 1.31 85.000 885.000 505.158 1.7 44.728 2.629.727 1.390.157 44.000 44.000 2.485.727 246,157 3,621.28 (2.000.000) 3.125.250 1.1 25.250 620.092 505 505.158 3.027.500 3,532.658 787.030 744.728 1,770,000 shares outstanding