Hastery Problems Financial Matement Analysis Liquidity and Solvency Hear Your fiend, another accountant, has bet you that with your knowledge of accounting and just the computations for commen analytical mesures you can figure out any moects of a company's financial statements. You take the bet Match each computation to one of the liquidity and salvency measures in the table (Hint: Begin by looking for simple computations and identifying the amounts in those computations. Look for offer that use those amounts.) Liquidity and Solvency Heasures Computations 4 Working capital Current Quick ratio Accounts receivable turnover Number of days sales in receivables Intory turnover Number of days sales in inventory Ratie of foxed assets te long-tarm labilties $3.095.000-$800.000 $3.095.000+ $880,000 $1.866,000+ $880,000 $8.250.000+[($714,000 +$740.000)+2 ($714.000 +$740,000) +2)+($8.250.000 + 365) 4.100.000+ (($1.072.000 $1.100.000) + 21. (1.072,000 $1.100.000) + 2]+($4,100,000 +365) $2.490.000 +$1.690.000 $2.570.000 +$4,039.000 5970.500 +$127,000) $127.000 cilities to stockholders' equity mes interest earned Balance Sheet se the following balance sheet form to enter amounts you identify from the computations on the Liquidity and Solvency Measures p the and the rear Computants, Prity Measures part. If you have a choice of bid amounts, assume the first amount in the rati the mounts for the balet on the Balance Sheet Liquidity and Solvency Measures Your friend, another accountant, has bet you that with your knowledge of accounting and just the computations for common ana statements. You take the bet! Match each computation to one of the liquidity and solvency measures in the table. (Hint: Begin by looking for simple computati measures that use those amounts.) Liquidity and Solvency Measures Computations Working capital Current ratio Quick ratio Accounts receivable turnover Number of days' sales in receivables Inventory turnover Number of days' sales in inventory Ratio of fixed assets to long-term liabilities Ratio of liabilities to stockholders' equity Times interest earned $3,095,000-$880,000 $3,095,000 $880,000 $1,866,000+ $880,000 $8,250,000+[($714,000 +$740,000) 21 [($714,000+ $740,000) 21 ($8,250,000+365) $4,100,000+ [($1,072,000 +$1,100,000) + 2] [($1,072,000 $1,100,000) 21 ($4,100,000 365) $2,690,000 $1,690,000 $2,570,000+ $4,039,000 ($970,500+$127,000) $127,000 Balance Sheet Use the following balance sheet form to enter amounts you identify from the computations on the Liquidity and Solvency Measures pa Profitability Measures part. If you have a choice of two amounts, assume the first amount in the ratio is for the end of the year. Comp Balance Sheet December 31, 2016 Current assets Assets < Profitability Measures part. If you have a choice of two amounts, assume the first a Balance Sheet December 31, 20Y6 Assets Current assets: Cash Marketable securities Accounts receivable (net) Inventory Prepaid expenses Total current assets Long-term investments Property, plant, and equipment (net) Total assets Liabilities Current liabilities Long-term liabilities Total liabilities Stockholders' Equity Preferred stock, $10 par Common stock, $5 par Retained earnings $823,000 Inventory Prepaid expenses Total current assets Long-term investments Property, plant, and equipment (net) Total assets Liabilities Current liabilities Long-term liabilities Total liabilities Stockholders' Equity Preferred stock, $10 par Common stock, $5 par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity S Profitability Measures Match each computation to one of the profitability measures in the table. Profitability Measures Asset turnover Return on total assets Computations $8,250,000+ [($5,785,000+ $5,595,00 (5786,300 + $127,000) + [($6,609,000