Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Harmony Corporation reported these figures: E (Click the icon to view the balance sheet.) Harmony Corporation has 3,200,000 shares of common stock outstanding. Its stock

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Harmony Corporation reported these figures: E (Click the icon to view the balance sheet.) Harmony Corporation has 3,200,000 shares of common stock outstanding. Its stock has traded recently at $27.00 per share. You would like to gain a better understanding of Harmony Corporation's financial position. Assume all sales are on credit. (Click the icon to view the income statement.) Read the requirement C. Acid-test ratio Enter the formula on the first line, then calculate the acid-test ratio on the next line. (Enter amounts in thousands as provided to you in the problem statement. Abbreviation used: ST short-term. Round your answer to two decimal places. For accounts with a zero balance enter $0 where appropriate.) Acid-test Cash ST investments Net receivables Current liabilities ratio %3D Choose from any list or enter any number in the input fields and then click Check Answer. (amounts in thousands) 2017 2016 Assets Current assets: Cash 5,120 $ 2,800 Accounts receivables 2,300 1,600 Inventory 1,800 1,200 2,800 3,240 Other current assets 8,400 12,460 $ Total current assets 22 000 18 500. Done Print %24 %24 Totai current assets 12,460 $ 8,400 Other assets 22,000 18,500 Total assets 24 34,460 $ 26,900 Liabilities Total current liabilities 14,000 $ 13,000 4,960 5,400 Long-term liabilities Total liabilities 18,960 $ 18,400 Stockholders' equity Print Done %24 Total liabilities 2$ 18,960 $ 18,400 Stockholders' equity 15,500 8,500 Total common stockholders' equity 34,460 $ 26,900 Total liabilities and equity Print Done chard orati (amounts in thousands) 2017 Sales revenue %24 14,235 4,350 Less: Cost of goods sold cal ort-t ds Gross profit 9,885 ze 885 Less: Operating expenses Operating income 9,000 400 vest Less: Interest expense 8,600 Income before income taxes 6,200 Less: Income tax expense mbe Done Print %24 %24 %24 %24 %24 %24 %24 Sales revenue 2$ 14,235 Less: Cost of goods sold 4,350 Gross profit 9,885 Less: Operating expenses 885 ds as pi zero b Operating income 9,000 400 Less: Interest expense Income before income taxes 8,600 6,200 Less: Income tax expense 2,400 Net income Print Done

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

Accounting For Non-Accountants

Authors: David Horner

12th Edition

1789664306, 9781789664300

More Books

Students also viewed these Accounting questions

Question

7. What are the main provisions of the FMLA?

Answered: 1 week ago

Question

2. Do small companies need to develop a pay plan? Why or why not?

Answered: 1 week ago