Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A condensed balance sheet for Bradford Corporation prepared at the end of the year appears as follows. Assets Liabilities & Stockholders' Equity Cash $ 116,000

A condensed balance sheet for Bradford Corporation prepared at the end of the year appears as follows.

Assets Liabilities & Stockholders' Equity

Cash $ 116,000 Notes payable (due in 6 months) $ 46,000

Accounts receivable 130,000 Accounts payable 106,000

Inventory 270,000 Long-term liabilities 376,000

Prepaid expenses 60,000 Capital stock, $5 par 300,000

Plant & equipment (net) 570,000 Retained earnings 408,000

Other assets 90,000

Total $ 1,236,000 Total $ 1,236,000

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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Comprehensive Assurance & Systems Tool An Integrated Practice Set

Authors: Laura R Ingraham, J Greg Jenkins

3rd Edition

0133251969, 9780133251968

More Books

Students also viewed these Accounting questions