Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Canadian Bacon Inc. financial statements are presented in the table below. Based on the information in the table, calculate the firm's current ratio. Round the

Canadian Bacon Inc. financial statements are presented in the table below.

Based on the information in the table, calculate the firm's current ratio.

Round the answers to two decimal places

Balance Sheet December 31, 2014

Cash and marketable securities $132,000 Accounts payable $399,000
Accounts receivable $311,000 Notes payable $98,500
Inventories $512,000 Accrued expenses $89,300
Prepaid expenses $11,300 Total current liabilities $586,800
Total current assets $966,300 Long-term debt $799,400
Gross fixed assets $2,104,000 Par value and paid-in-capital $298,000
Less: accumulated depreciation $398,000 Retained Earnings $988,100
Net fixed assets $1,706,000 Common Equity 1,286,100
Total assets $2,672,300 Total liabilities and owner's equity $2,672,300

Income Statement, Year of 2014

Net sales (all credit) $4,276,600.00
Less: Cost of goods sold $3,292,982.00
Selling and administrative expenses $349,000.00
Depreciation expense $148,000.00
EBIT $486,618.00
Interest expense $49,600.00
Earnings before taxes $437,018.00
Income taxes $174,807.20
Net income $262,210.80

Your Answer:

Question 1 options:

Answer

Next Page

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intro Stats

Authors: Richard D. De Veaux, Paul F. Velleman, David E. Bock

3rd edition

321533283, 321533289, 9780321463708, 9780321503848, 9780321503800, 9780321499431, 9780321499417, 978-0321500458

More Books

Students also viewed these Mathematics questions

Question

What messages did you receive from others about going to college?

Answered: 1 week ago