Question
Assets Liabilities & Stockholders' Equity Cash $ 105,000 Notes payable (due in 6 months) $ 40,000 Accounts receivable 145,000 Accounts payable 110,000 Inventory 270,000 Long-term
Assets Liabilities & Stockholders' Equity Cash $ 105,000 Notes payable (due in 6 months) $ 40,000 Accounts receivable 145,000 Accounts payable 110,000 Inventory 270,000 Long-term liabilities 360,000 Prepaid expenses 60,000 Capital stock, $5 par 300,000 Plant & equipment (net) 570,000 Retained earnings 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. Compute Current ratio b. Compute Quick ratio c. Compute Working capital d. Compute Debt ratio e. Compute the accounts receivable turnover (all sales were on credit). f. Compute Inventory turnover. g. Compute the book value per share of capital stock.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started