Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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

International Financial Reporting Standards ImplementationA Global Experience

Authors: Mohammad Nurunnabi

1st Edition

1801174415, 9781801174411

More Books

Students also viewed these Accounting questions