Question
I need help answering the following assignment that I've provided below: The following information is available for the Carter Co. Cash: $45,000 Short-Term Investments: $82,000
I need help answering the following assignment that I've provided below:
The following information is available for the Carter Co.
Cash: $45,000
Short-Term Investments: $82,000
Receivables: $105,000
Current Assets: $312,000
Current Liabilities: $123,000
Net Sales: $850,000
Cost of Goods Sold: $400,000
Net Income: $360,000
Beginning Inventory: $61,000
Ending Inventory: $56,000
Beginning Accounts Receivable: $124,000
Ending Accounts Receivable: $99,000
The following information is available for the Dalton Co.
Cash: $56,000
Short-Term Investments: $85,000
Receivables: $111,000
Current Assets: $302,000
Current Liabilities: $90,000
Net Sales: $750,000
Cost of Goods Sold: $323,000
Net Income: $400,000
Beginning Inventory: $89,000
Ending Inventory: $91,000
Beginning Accounts Receivable: $102,000
Ending Accounts Receivable: 94,000
Required:
- For both companies calculate the current ratio, acid test, working capital, accounts receivable turnover, inventory turnover, and profit margin.
- Which company is the better credit risk?
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