LTI Launch X CengageNOWv2 | Online teachin x C Current Position Analysis The bor x Course Hero X + V X C A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Q E Exam 2 . MC.09.076 Current Position Analysis ? 2. MC.09.078 The bond indenture for the 10-year, 8% debenture bonds dated January 2, 20VS, required working capital of $1,744,300, a current ratio of 4.9, and a quick ratio of 3.0 at the end of each calendar year until the bonds mature. At December 31, 2019, the three measures were computed as follows: 3. MC.09.040 1. Current assets: 4. EX.09.06.ALGO Cash $222,000 Temporary investments 277,500 5. MC.09.037 Accounts receivable (net) 444,000 6. MC.09.043 Inventories 351,500 7. MC.09.038 Prepaid expenses 92,500 Intangible assets 55,500 8. MC.09. Property, plant, and equipment 999,000 9. MC.09.042 Total current assets (net) $2,442,000 10. MC.09.036 Current liabilities: Accounts and short-term notes payable $224,000 11. MC.09.031 Accrued liabilities 256,000 12. EX.09-08.Algo Total current liabilities (480,000) 13. PR.09.05.AL Working capital $1,962,000 2. Current ratio 5.1 $2,442,000 = $480,000 14. MC.09.069 3. Quick ratio 5.5 $1,221,000 = $224,000 MC.09.048 a. There are errors in the calculation of the three measures of current position analysis. Determine the correct amounts. Round ratios to two decimal places. 16. MC.09.035 Working capital 17. MC.09.052 Current ratio 18 MC 09 041 Next Progress: 12/26 items Previous Time Remaining: 1:59:09 All work saved. Email Instructor Submit Test for Grading Q Search ENG 11:09 PM 6 US 6/17/2023LTI Launch X CengageNOWv2 | Online teachin x Course Hero X *Course Hero X + V X C A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Exam 2 Current assets: . MC.09.076 Cash $222,000 2. MC.09.078 Temporary investments 277,500 Accounts receivable (net) 444,000 3. MC.09.040 Inventories 351,500 4. EX.09.06.ALGO Prepaid expenses 92,500 5. MC.09.037 Intangible assets 55,500 Property, plant, and equipment 999,000 6. MC.09.043 Total current assets (net) $2,442,000 7. MC.09.038 Current liabilities: 8. MC.09. Accounts and short-term notes payable $224,000 Accrued liabilities 256,000 9. MC.09.042 Total current liabilities (480,000) 10. MC.09.036 Working capital $1,962,000 11. MC.09.031 2. Current ratio 5.1 $2,442,000 + $480,000 3. Quick ratio 5.5 $1,221,000 = $224,000 12. EX.09-08.Algo a. There are errors in the calculation of the three measures of current position analysis. Determine the correct amounts. Round ratios to two decimal places. 13. PR.09.05.AL Working capital 14. MC.09.069 Current ratio MC.09.048 Quick ratio b. Based on the data, all of the following are true, regarding the bond indenture, except: 16. MC.09.035 17. MC.09.052 18 MC 09 041 Progress: 12/26 items Previous Next Time Remaining: 1:58:40 All work saved. Email Instructor Submit Test for Grading Q Search ENG 11:10 PM 6 US 6/17/2023LTI Launch X CengageNOWv2 | Online teachin x *Course Hero C A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Exam 2 Trend Analysis ? . MC.09.076 2. MC.09.078 Critelli Company has provided the following comparative information: Year 5 Year 4 Year 3 Year 2 Year 1 3. MC.09.040 Net income $936,700 $807,500 $678,600 $580,000 $491,500 4. EX.09.06.ALGO Interest expense 318,500 290,700 251,100 191,400 152,400 5. MC.09.037 Income tax expense 299,744 226,100 190,008 150,800 117,960 Average total assets 5,481,223 4,837,885 4,132,000 3,506,364 2,981,019 6. MC.09.043 Average stockholders' equity 1,877,154 1,678,794 1,465,659 1,297,539 1,135,104 7. MC.09.038 You have been asked to evaluate the historical performance of the company over the last five years. 8. MC.09. Selected industry ratios have remained relatively steady at the following levels for the last five years: 9. MC.09.042 Industry Ratios Return on total assets 22.6 % 10. MC.09.036 Return on stockholders' equity 46.7 % 11. MC.09.031 Times interest earned 12. EX.09-08.Algo Instructions: Calculate three ratios for Year 1 through Year 5. Round to one decimal place. 13. PR.09.05.ALGO a. Return on total assets: 14. MC.09.069 Year 5 MC.09.048 Year 4 9% 16. MC.09.035 Year 3 1% Year 2 19% 17. MC.09.052 18 MC 09 041 Previous Next Progress: 13/26 items Time Remaining: 1:58:05 All work saved. Email Instructor Submit Test for Grading Q Search ENG 11:10 PM US 6/17/2023 6LTI Launch X CengageNOWv2 | Online teachin x Course Hero C A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Exam 2 ? . MC.09.076 Instructions: 2. MC.09.078 Calculate three ratios for Year 1 through Year 5. Round to one decimal place. a. Return on total assets: 3. MC.09.040 Year 5 4. EX.09.06.ALGO Year 4 5. MC.09.037 Year 3 % 6. MC.09.043 Year 2 % Year 1 7. MC.09.038 b. Return on stockholders equity: 8. MC.09. Year 5 9% 9. MC.09.042 Year 4 10. MC.09.036 Year 3 Year 2 11. MC.09.031 Year 1 12. EX.09-08.Algo c. Times interest earned; 13. PR.09.05.ALGO Year 5 14. MC.09.069 Year 4 MC.09.048 Year 3 Year 2 16. MC.09.035 Year 1 17. MC.09.052 18 MC 09 041 Progress: 13/26 items Previous Next Time Remaining: 1:57:44 All work saved. Email Instructor Submit Test for Grading Q Search ENG 11:11 PM 6 US 6/17/2023LTI Launch X CengageNOWv2 | Online teachin X *Course Hero C A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Exam 2 9. MC.09.042 Accounts Receivable Analysis 10. MC.09.036 The following data are taken from the financial statements of Rise and Shine Company. Terms of all sales are 2/10, n/30. 11. MC.09.031 Year 3 Year 2 Year 1 12. EX.09-08.Algo Accounts receivable, end of year $212,000 $226,000 $241,200 Sales 1,248,300 1,191,360 13. PR.09.05.AL a. For Years 2 and 3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Assume there are 365 days in the year. Round intermediate calculations to the nearest whole dollar 14. MC.09.069 and final answers to one decimal place. Year 3 Year 2 MC.09.048 1. Accounts receivable turnover 16. MC.09.035 2. Number of days' sales in receivables days days 17. MC.09.052 b. what conclusion can be drawn from these data concerning accounts receivable and credit policies? The collection of accounts receivable has . This can be seen in the in accounts receivable turnover and the in the collection period. The company either became 18. MC.09.041 aggressive in collecting accounts receivable or restrictive in granting credit to customers in Year 3. 19. MC.09.065 20. MC.09.047 21. MC.09.077 22. EX.09.09.ALGO 23. MC.09.032 24. MC.09.066 MC.09.049 26. MC.09.033 Progress: 22/26 items Previous Next Time Remaining: 1:57:05 All work saved. Email Instructor Submit Test for Grading Q Search ENG 11:11 PM 6 US 6/17/2023