Question
Cash $ 110,000 Notes payable (due in 6 months) $ 45,000 Accounts receivable 150,000 Accounts payable 123,000 Inventory 270,000 Long-term liabilities 326,000 Prepaid expenses 60,000
Cash | $ | 110,000 | Notes payable (due in 6 months) | $ | 45,000 | |||
Accounts receivable | 150,000 | Accounts payable | 123,000 | |||||
Inventory | 270,000 | Long-term liabilities | 326,000 | |||||
Prepaid expenses | 60,000 | Capital stock, $5 par | 300,000 | |||||
Plant & equipment (net) | 570,000 | Retained earnings | 456,000 | |||||
Other assets | 90,000 | |||||||
Total | $ | 1,250,000 | Total | $ | 1,250,000 | |||
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.
a. Compute the current ratio. (Round your answer to 2 decimal place.)
b. Compute the quick ratio. (Round your answer to 2 decimal place.)
c. Compute the working capital.
d. Compute the debt ratio. (Round your percentage answers to nearest whole percent. i.e. 0.1234 as 12%.)
e. Compute the accounts receivable turnover (all sales were on credit). (Round your answer to 2 decimal places.)
f. Compute the inventory turnover. (Round your answer to 2 decimal places.)
g. Compute the book value per share of capital stock. (Round your answer to 2 decimal places.)
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