Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with the last one all the way at the bottom please Score: 0.79 of 1 pt 7 of 8 (6 complete) HW

I need help with the last one all the way at the bottom please

image text in transcribedimage text in transcribedimage text in transcribed

Score: 0.79 of 1 pt 7 of 8 (6 complete) HW Score: 67.56%, 5.4 of 8 pts E17-21 (similar to) Question Help Large Limb Photo Shop has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2016. To answer this question, you gather the following data: .: (Click the icon to view the data.) Compute the following ratios for 2016 and 2015, and evaluate the company's ability to pay its current liabilities and total liabilities: a. d. Current ratio Cash ratio Acid-test ratio Debt ratio Debt to equity ratio b. e- c. Data Table a. Compute the current ratios for 2016 and 2015. Begin by selecting the formula to compute the current ratio. 2016 2015 Current ratio = Total current assets/Total current liabilities Cash $ 58,000 $ 53,000 29,000 0 Now, compute the current ratios for 2016 and 2015. (Round your answers to two decimal places, X.XX.) Short-term Investments Net Accounts Receivables 128,000 108,000 2016: 1.71 2015: 2.30 237,000 257,000 Merchandise Inventory Total Assets 530,000 535,000 b. Compute the cash ratios for 2016 and 2015. 182,000 Total Current Liabilities Long-term Note Payable 265,000 44,000 52,000 Begin by selecting the formula to compute the cash ratio. Cash ratio = (Cash + Cash equivalents) / Total current liabilities 175,000 158,000 Income from Operations Interest Expense 48,000 31,000 Now, compute the cash ratios for 2016 and 2015. (Round your answers to two decimal places, X.XX.) 2016: 0.22 2015: 0.29 Print Done c. Compute the acid-test ratios for 2016 and 2015. Click to select your answer(s) and then click Check Answer. ? All parts showing Clear All Check Answer Score: 0.79 of 1 pt 7 of 8 (6 complete) HW Score: 67.56%, 5.4 of 8 pts %E17-21 (similar to) Question Help Large Limb Photo Shop has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2016. To answer this question, you gather the following data: Click the icon to view the data.) Compute the following ratios for 2016 and 2015, and evaluate the company's ability to pay its current liabilities and total liabilities: d. a. b. Current ratio Cash ratio Acid-test ratio Debt ratio Debt to equity ratio e. c. c. Compute the acid-test ratios for 2016 and 2015. Begin by selecting the formula to compute the acid-test ratio. Acid-test ratio = (Cash + Short-term investments + Net current receivables) / Total current liabilities Now, compute the acid-test ratios for 2016 and 2015. (Round your answers to two decimal places, X.XX.) 2016: 0.81 2015: 0.88 d. Compute the debt ratio for 2016 and 2015. Begin by selecting the formula to compute the debt ratio. Debt ratio = Total liabilities / Total assets Now, compute the debt ratios for 2016 and 2015. (Round your answer to one tenth of a percent, X.X%.) 2016: 58.3 % 2015: 43.7% e. Compute the debt to equity ratios for 2016 and 2015. Banin hu calentine the formula ta namnuita tha dant ta nartu ratin Click to select your answer(s) and then click Check Answer. ? All parts showing Clear All Check Answer Score: 0.79 of 1 pt 7 of 8 (6 complete) HW Score: 67.56%, 5.4 of 8 pts % E17-21 (similar to) A Question Help O Large Limb Photo Shop has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2016. To answer this question, you gather the following data: Click the icon to view the data.) Compute the following ratios for 2016 and 2015, and evaluate the company's ability to pay its current liabilities and total liabilities: a. d. Current ratio Cash ratio Acid-test ratio Debt ratio Debt to equity ratio b. e. c. Begin by selecting the formula to compute the debt ratio. Debt ratio = Total liabilities / Total assets Now, compute the debt ratios for 2016 and 2015. (Round your answer to one tenth of a percent, X.X%.) 2016: 58.3 % 2015: 43.7 % e. Compute the debt to equity ratios for 2016 and 2015. Begin by selecting the formula to compute the debt to equity ratio. Deb equity Total liabilities/Total equity Now, compute the debt to equity ratios for 2016 and 2015. (Round your answers to two decimal places, X.XX.) 2016: 1.40 2015: 0.78 Evaluate the company's ability to pay its current liabilities and total liabilities. (Industry averages for 2016; current ratio: 0.60, cash ratio: 0.40, acid-test ratio: 0.46, debt ratio: 69%, debt to equity ratio: 2.23.) The current ratio and acid-test ratio are relatively so the company the liquidity to pay its liabilities. The debt to equity ratio and the debt ratio are so the company overloaded with debt. Click to select your answer(s) and then click Check Answer. ? All parts showing Clear All Check

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

Governmental Accounting Auditing And Financial Reporting

Authors: Stephen J. Gauthier

1st Edition

0891252754, 978-0891252757

More Books

Students also viewed these Accounting questions

Question

What is an NIF? A DR?

Answered: 1 week ago