Question
Calculate the following ratios for Everva Corp for Year 2 (round to two decimals, e.g. 12.34, 34.56%): (a) Current ratio. (b) Acid-test ratio. (c) Debt
Calculate the following ratios for Everva Corp for Year 2 (round to two decimals, e.g. 12.34, 34.56%):
(a) Current ratio. (b) Acid-test ratio. (c) Debt ratio. (d) Equity ratio.
| Everva Corp. | ||
| | Year 2 | Year 1 |
| Cash | $22,000 | $20,000 |
| Temporary investments | 26,000 | - |
| Accounts receivable | 38,000 | 36,000 |
| Merchandise inventory | 76,000 | 48,000 |
| Prepaid insurance | 8,000 | 6,000 |
| Long-term investments | 52,000 | 18,000 |
| Equipment (net) | 135,000 | 128,000 |
| Land | 25,000 | 21,000 |
| Goodwill | 56,000 | 51,000 |
| Total Assets | $438,000 | $328,000 |
| | | |
| Current liabilities | $64,000 | $63,000 |
| Long-term liabilities | 36,000 | 31,000 |
| Common shares | 162,000 | 149,000 |
| Retained earnings | 176,000 | 85,000 |
| Total Liabilities and Equity | $438,000 | $328,000 |
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Financial Markets and Institutions
Authors: Anthony Saunders, Marcia Cornett
6th edition
9780077641849, 77861663, 77641841, 978-0077861667
