Question
Cash $20,000 Accounts Receivable, Net 81,000 Merchandise Inventory 186,000 Total Assets 635,000 Accounts Payable 99,000 Accrued Liabilities 41,000 Short-term Notes Payable 48,000 Long-term Liabilities 224,000
Cash $20,000
Accounts Receivable, Net 81,000
Merchandise Inventory 186,000
Total Assets 635,000
Accounts Payable 99,000
Accrued Liabilities 41,000
Short-term Notes Payable 48,000
Long-term Liabilities 224,000
Net Income 71,000
Common Shares Outstanding 10,000
| 1. | Compute Road Trip's current ratio, debt ratio, and earnings per share. Round all ratios to two decimal places. |
| 2. | Compute the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately. |
| a. Purchased merchandise inventory of $46,000 on account. | |
| b. Borrowed $122,000 on a long-term note payable. | |
| c. Issued 1,000 shares of common stock, receiving cash of $105,000. | |
| d. Received cash on account, $8,000 |
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Accounting Reform In Transition And Developing Economies
Authors: Robert W. McGee
1st Edition
0387257071, 9780387257075
