Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Following is the balance sheet of Adams Company for Year 3: ADAMS COMPANY Balance sheet Assets Cash $ 14,600 Marketable securities 8,020 Accounts receivable 12,680

image text in transcribed

Following is the balance sheet of Adams Company for Year 3: ADAMS COMPANY Balance sheet Assets Cash $ 14,600 Marketable securities 8,020 Accounts receivable 12,680 Inventory 10,750 Property and equipment 171,500 Accumulated depreciation (12,500) Total assets $205,050 Liabilities and Stockholders' Equity Accounts payable 8,510 Current notes payable 3,040 Mortgage payable 4,950 Bonds payable 21,060 Common stock 114,300 Retained earnings 53, 190 Total liabilities and stockholders' equity $205,050 The average number of common stock shares outstanding during Year 3 was 860 shares. Net income for the year was $16,000. Required Compute each of the following: (Round your answer to 2 decimal places. For percentages, 0.2345 should be entered as 23.45.) $ a. Current ratio b. Earnings per share c. Quick (acid-test) ratio d. Return on investment e. Return on equity f. Debt to equity ratio 17.09 per share 2.83 7.17% 8.85% 0.23

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

College Accounting A Practical Approach

Authors: Jeffrey Slater, Debra Good

14th Canadian Edition

0135222419, 978-0135222416

More Books

Students also viewed these Accounting questions

Question

What is meant by Nonverbal communication is rule governed?

Answered: 1 week ago

Question

Timeline for implementation report

Answered: 1 week ago

Question

a. What aspects of the situation are under your control?

Answered: 1 week ago