Question
A condensed balance sheet for Bradford Vonporation prepared at the end of the year appears as follows Assets Liabilities & Stockholders' Equity Cash $105,000 Notes
A condensed balance sheet for Bradford Vonporation prepared at the end of the year appears as follows
Assets | Liabilities & Stockholders' Equity |
Cash $105,000 | Notes payable (due in 6 months) $40,000 |
Accounts receivable $145,000 | Accounts Receivable $110,000 |
Inventory $270,000 | Long-term liabilities $360,000 |
Prepaid expenses $60,000 | Capital Stock, $5 par $300,000 |
Plant and Equipment (net) $570,000 | Retained earning $430,000 |
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.
Compute the following:
A. Current ratio B. Quick ratio C. Working capital D. Debt ratio E. Accounts receivable turnover (all sales were on credit). F. Inventory turnover G. Book value per share of capital stock
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