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A balance sheet shows Total Current Assets of $351,000 (Cash of $54,000, Notes Receivable of $9000, Accounts Receivable of $189,000, and Inventory of $99,000), Total
A balance sheet shows Total Current Assets of $351,000 (Cash of $54,000, Notes Receivable of $9000, Accounts Receivable of $189,000, and Inventory of $99,000), Total Plant Assets of $36,000 (Land of $18,000, Buildings of $9000, and Fixtures of $9000) and Current Liabilities of $180,000. Determine the Current Ratio, the Acid-test Ratio, and evaluate the health of the company. The Current Ratio for the company is to 1. (Round to the nearest hundredth.) The Acid-test Ratio is to 1. (Round to the nearest hundredth.) What do the ratios suggest about the company? A. Both ratios indicate a healthy company. B. Both ratios suggest the company may have difficulties. C. The Acid-test Ratio suggests good financial condition, but the Current Ratio is too low. In the last fiscal year Bill's Bookstore had gross sales of $264,000 with returns of $5280. At the beginning of the fiscal year, Bill had an inventory of $52,800. During the year he purchased a total of $105,600 worth of goods with a freight charge of $1584. The inventory at the close of the fiscal year was $66,000. Wages and salaries were $39,600, rent was $11,616, advertising was $4224, utilities were $3168, taxes on inventory and payroll were $2112, miscellaneous expenses were $7392, and income taxes were $15,840. Find the cost of goods sold, the gross profit, the net income before taxes, and the net income after taxes. Bill's cost for goods sold was $ His gross profit was $1 Bill's net income before taxes was $ His net income after taxes was $
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