Question
A condensed balance sheet for Bradford Corporation prepared at the end of the year appears as follows: Assets Liabilities & Stockholders' Equity Cash $ 95,000
A condensed balance sheet for Bradford Corporation prepared at the end of the year appears as follows: |
Assets | Liabilities & Stockholders' Equity | |||||
Cash | $ | 95,000 | Notes payable (due in 6 months) | $ | 43,000 | |
Accounts receivable | 140,000 | Accounts payable | 95,000 | |||
Inventory | 280,000 | Long-term liabilities | 360,000 | |||
Prepaid expenses | 60,000 | Capital stock, $5 par | 300,000 | |||
Plant & equipment (net) | 570,000 | Retained earnings | 437,000 | |||
Other assets | 90,000 | |||||
Total | $ | 1,235,000 | Total | $ | 1,235,000 | |
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 places.) b. Compute the quick ratio. (Round your answer to 2 decimal places.) 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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