Question
Financial statements for Marcell Company appear below: Marcell Company Statement of Financial Position December 31, Year 2 and Year 1 (dollars in thousands) Year 2
Financial statements for Marcell Company appear below:
Marcell Company
Statement of Financial Position
December 31, Year 2 and Year 1
(dollars in thousands)
| Year 2 | Year 1 | |
Current Assets: |
| ||
Cash and Marketable Securities | $ 160 | $ 150 | |
Accounts Receivable, Net | $ 110 | $ 110 | |
Inventory | $ 180 | $ 180 | |
Prepaid Expenses | $ 20 | $ 20 | |
Total Current Assets | $ 470 | $ 460 | |
Noncurrent Assets: |
| ||
Plant & Equipment, Net | $1,700 | $1,680 | |
Total Assets | $2,170 | $2,140 |
Current Liabilities: |
| |
Accounts Payable | $ 110 | $ 150 |
Accrued Liabilities | $ 60 | $ 60 |
Notes Payable, Short Term | $ 280 | $ 290 |
Total Current Liabilities | $ 450 | $ 500 |
Noncurrent Liabilities: |
| |
Bonds Payable | $ 480 | $ 500 |
Total Liabilities | $ 930 | $1,000 |
Shareholders' Equity: |
| |
Preferred Shares, $10 Par, 8% | $ 100 | $ 100 |
Common Shares, $5 Par | $ 140 | $ 140 |
Additional Paid-In CapitalCommon Shares | $ 280 | $ 280 |
Retained Earnings | $ 720 | $ 620 |
Total Shareholders' Equity | $ 240 | $1,140 |
Total Liabilities & Shareholders' Equity | $2,170 | $2,140 |
Marcell Company
Income Statement
For the Year Ended December 31, Year 2
(dollars in thousands)
Sales (All on Account) | $2,550 |
Cost of Goods Sold | $1,780 |
Gross Margin | $ 770 |
Operating Expenses | $ 300 |
Net Operating Income | $ 470 |
Interest Expense | $ 50 |
Net Income before Taxes | $ 420 |
Income Taxes (30%) | $ 126 |
Net Income | $ 294 |
A. | What was Marcell Company's working capital (in thousands of dollars) at the end of Year 2? |
|
|
|
|
B. | What was Marcell Company's current ratio at the end of Year 2? |
|
|
|
|
C. | What was Marcell Company's acid-test (quick) ratio at the end of Year 2? |
|
|
|
|
D. | What was Marcell Company's accounts receivable turnover for Year 2? |
|
|
|
|
E. | What was Marcell Company's average collection period (age of receivables) for Year 2? |
|
|
|
|
F. | What was Marcell Company's inventory turnover for Year 2? |
|
|
|
|
G. | What was Marcell Company's average sale period (turnover in days) for Year 2? |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started