Question
Background Louisville Farms, is a breeder of racehorses. The CEO John Carter needs assistance and advice with his financials to allow him to concentrate on
Background
Louisville Farms, is a breeder of racehorses. The CEO John Carter needs assistance and advice with his financials to allow him to concentrate on the horse breeding rather than trying to figure out the best accounting approaches. You have been recruited as a consultant by the CEO as recent graduate from EU Business school to help out.
QUESTION 4
(15 Points)
Analysing Statements
The statements of Woody Woodpecker Corp. contain the following information:
| 2019 | 2018 | |
| Cash & Cash Equivalents | $ 65,000.00 | $ 42,000.00 |
| Accounts Receivable | $ 44,000.00 | $ 51,000.00 |
| Inventory | $ 129,000.00 | $ 102,000.00 |
| Prepaid Expenses | $ 12,000.00 | $ 9,200.00 |
| Other Current Assets | $ 9,500.00 | $ 8,400.00 |
| Total Assets | $ 450,000.00 | $ 390,000.00 |
| Non-Current Liabilities | $ 180,000.00 | $ 180,000.00 |
| Total Liabilities | $ 270,000.00 | $ 210,000.00 |
| Income from Operations | $ 550,000.00 | $ 490,000.00 |
| Interest Expense | $ 95,000.00 | $ 86,000.00 |
Instruction: (show your calculations and round to 2 decimal places) From the above information calculate:
Current Ratio 2019
Quick Ratio 2019
Debt Ratio 2019
Working Capital 2019
Percentage Change in Working Capital
Percentage Change in Total Liabilities
Time-Interest-Earned Ratio 2019
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Auditing Algorithms Understanding Algorithmic Systems From The Outside In Foundations And Trends
Authors: Danaë Metaxa, Joon Sung Park, Ronald E Robertson, Karrie Karahalios, Christo Wilson, Jeff Hancock, Christian Sandvig
1st Edition
1680839160, 978-1680839166
