Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Marigold Company provides you with the following balance sheet information as of December 31, 2020. $10,700 Current liabilities $13,750 Current assets Long-term assets 25,650 Long-term

image text in transcribed

image text in transcribed

Marigold Company provides you with the following balance sheet information as of December 31, 2020. $10,700 Current liabilities $13,750 Current assets Long-term assets 25,650 Long-term liabilities 8,850 Stockholders' equity 13,750 Total assets $36,350 Total liabilities and stockholders' equity $36,350 In addition, Marigold reported net income for 2020 of $15,650, income tax expense of $3,200, and interest expense of $1,150. (Round ratios to 2 decimal places, eg. 2.75:1. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 02:30:59 Hide Timer Compute the current ratio and working capital for Marigold for 2020. Current ratio Working capital (b) Assume that at the end of 2020, Marigold used $2,850 cash to pay off $2,850 of accounts payable. tocca 89400994767adiqu 1/2 How would the current ratio and working capital have changed? Current ratio :1 Working capital (c) Compute the debt to assets ratio and the times interest earned ratio for Marigold for 2020. Debt to assets ratio :1 Times interest earned ratio

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

Statutory Audits In Europe

Authors: Michael Kend, Giulia Leoni, Cristina Florio, Silvia Gaia

1st Edition

1032201738, 978-1032201733

More Books

Students also viewed these Accounting questions

Question

My Strengths, and column

Answered: 1 week ago

Question

2. What is the impact of information systems on organizations?

Answered: 1 week ago

Question

Evaluate the impact of technology on HR employee services.

Answered: 1 week ago