Question
A condensed balance sheet for Bradford Corporation prepared at the end of the year appears as follows. Assets Liabilities & Stockholders' Equity Cash $ 110,000
A condensed balance sheet for Bradford Corporation prepared at the end of the year appears as follows.
Assets | Liabilities & Stockholders' Equity | ||||||||
Cash | $ | 110,000 | Notes payable (due in 6 months) | $ | 46,000 | ||||
Accounts receivable | 140,000 | Accounts payable | 94,000 | ||||||
Inventory | 270,000 | Long-term liabilities | 324,000 | ||||||
Prepaid expenses | 60,000 | Capital stock, $5 par | 300,000 | ||||||
Plant & equipment (net) | 570,000 | Retained earnings | 476,000 | ||||||
Other assets | 90,000 | ||||||||
Total | $ | 1,240,000 | Total | $ | 1,240,000 | ||||
During the year, the company earned a gross profit of $1,116,000 on sales of $2,950,000. Accounts receivable, inventory, and plant assets remained almost constant in amount throughout the year, so year-end figures may be used rather than averages.
a. Compute the current ratio. (Round your answer to 2 decimal place.)
b. Compute the quick ratio. (Round your answer to 2 decimal place.)
c. Compute the working capital.
d. Compute the debt ratio. (Round your percentage answers to nearest whole percent. i.e. 0.1234 as 12%.)
e. Compute the accounts receivable turnover (all sales were on credit). (Round your answer to 2 decimal places.)
f. Compute the inventory turnover. (Round your answer to 2 decimal places.)
g. Compute the book value per share of capital stock. (Round your answer to 2 decimal places.)
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