Question
Balance sheet December 31 Assets20072006 Cash$25,000$40,000 Short term investments15,00060,000 Accounts receivable50,00030,000 Inventory50,00070,000 Property, plant and equipment160,000200,000 Total assets$300,000$400,000 Liabilities and stockholders equity Accounts payable$20,000$30,000 Short
Balance sheet
December 31
Assets20072006
Cash$25,000$40,000
Short term investments15,00060,000
Accounts receivable50,00030,000
Inventory50,00070,000
Property, plant and equipment160,000200,000
Total assets$300,000$400,000
Liabilities and stockholders equity
Accounts payable$20,000$30,000
Short term notes payable40,00090,000
Bonds payable80,000160,000
Common stock60,00045,000
Retained earnings100,00075,000
Total liabilities and stockholders equity$300,000$400,000
Income statement (for the year ended December 31, 2007)
Net sales $360,000
Cost of goods sold 184,000
Gross profit 176,000
Expenses
Selling expenses30,000
Administrative expenses59,000
Total expenses 89,000
Income before interest expense and taxes87,000
Interest expense12,000
Income before income taxes75,000
Income tax expense30,000
Net income $45,000
Additional information
120,000 shares were outstanding in 2007:90,000 shares were outstanding in 2006
Market value of common stock on December 31, 2007 was $12 per share.
What is:
Working capital
Current Ratio
Quick ratio
Cash ratio
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Principles Of Financial Accounting
Authors: Kermit Larson, John Wild
20th Edition
77338235, 978-0077619442
