Question #4

E Assignments X 13 Final Examination (- C' i mylabtpearsontcom ACCT 106 - W01 Financial Accounting ll Jordan Hue 05/16/23 6:25 PM ('2) This test: 5 point(s) possible This question: 1 point(s) possible E Test: Final Examination Question 4 of 5 Submit test _ _ Large Land Photo Shop has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2024, To answer this question, you Questlon \"St '6 gather the following data: E (Click the icon to view the data.) Read the uirements. 0 Question 1 Data table 0 Question 2 a. Compute the current ratios for A 2024 2023 Begin by selecting the formula to . O . Cash $ 52,000 $ 43,000 QueSt'on 3 Current ratio = Short-term Investments 33,000 0 NOW, COmPUte the current ratios f' Net Accounts Receivables 122,000 132,000 0 Question 4 _ Merchandise Inventory 267,000 296,000 Current ratio Total Assets 540,000 490,000 2024 . Total Current Liabilities 295,000 212,000 0 Question 5 2023 Long-term Notes Payable 42,000 60,000 b. Compute the \"Sh ratios for 20 Income from Operations 160,000 183,000 Begin by selecting the formula to ~ Interest Expense 46,000 35,000 Cash ratio Now, compute the cash ratios for . . 2024 2023 0. Compute the acid-test ratios for 2024 and 2023, Rnnin hu enlnntinn the fnrmlll: in nnmnuin thn APirLtaQO ratin E Assignments X 13 Final Examination (- C' i mylabtpearsontcom ACCT 106 - W01 Financial Accounting ll Jordan Hue 05/16/23 6:25 PM ('2) This test: 5 point(s) possible 2 Test: Flnal Examlnatlon GueSt'on 4 of 5 This question: 1 point(s) possible Submit test _ _ Large Land Photo Shop has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2024' To answer this question, you Question list l gather the following data: Click the icon to view the data.) Read the uirements. 0 Question 1 0 Question 2 a. Compute the current ratios for 2024 and 2023. Begin by selecting the formula to compute the current ratio. 0 QueStion 3 Current ratio = New compute the current ratios for 2024 and 2023. (Round your answers to two decimal places, XXX.) 0 Question 4 _ Current ratio 2024 0 Question 5 2023 b. Compute the cash ratios for 2024 and 20231 Begin by selecting the formula to compute the cash ratio. Cash ratio = Now, compute the cash ratios for 2024 and 2023. (Round your answers to two decimal places, XXX.) 2024 2023 0. Compute the acid-test ratios for 2024 and 2023, Rnnin hu enlnntinn the fnrmlll: in nnmmun thn APirLtaQ' ratin E Assignments X 13 Final Examination (- C' i mylabpearsoncom ACCT 106 - W01 Financial Accounting ll Jordan Hue 05/16/23 6:25 PM ('2) This test: 5 point(s) possible This question: 1 point(s) possible Sme't test E Test: Final Examination Question 4 of 5 _ _ Large Land Photo Shop has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2024. To answer this question, you Question list l gather the following data: Click the icon to view the data.) Read the uirements. 0 Question 1 0 Question 2 Now. compute the cash ratios for 2024 and 2023. (Round your answers to two decimal places, XXX.) Cash r ' 0 Question 3 2024 2023 . c. Compute the acid-test ratios for 2024 and 2023. 0 Question 4 Begin by selecting the formula to compute the acid-test ratio, ' Acid-test ratio = 0 Question 5 Now. compute the acid-test ratios for 2024 and 2023. (Round your answers to two decimal places, X.XX.) Aside-test ratio 2024 2023 d. Compute the debt ratio for 2024 and 2023. Begin by selecting the formula to compute the debt ratio. Debt ratio = Now. compute the debt ratios for 2024 and 2023. (Round your answer to one tenth of a percent. XAX, and do not enter the %. For example, enter 10.1% as 10.1.) E Assignments X 13 Final Examination (- 0' ti mylabpearsoncom ACCT 106 - W01 Financial Accounting ll Jordan Hue 05/16/23 6:25 PM ('2) This test: 5 point(s) possible This question: 1 point(s) possible Sme't test E Test: Final Examination Question 4 of 5 Large Land Photo Shop has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2024. To answer this question, you Question list l gather the following data: Click the icon to view the data.) Read the uirements. 0 Question 1 0 Question 2 Debt ratio = Now. compute the debt ratios for 2024 and 2023, (Round your answer to one tenth of a percent. X.X, and do not enter the . For example. enter 10.1% as 10.1.) 0 Question 3 Debt ratio % 2024 \"/o . 2023 % 0 Question 4 3. Compute the debt to equity ratios for 2024 and 2023. Begin by selecting the formula to compute the debt to equity ratio. 0 Question 5 Debt to equity = Now. compute the debt to equity ratios for 2024 and 2023. (Round your answers to two decimal places, X.XX.) Debt to equity ratio 2024 2023 Evaluate the company's ability to pay its current liabilities and total liabilities. (Assume the following industry averages for 2024; 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 V . so the company V the liquidity to pay its liabilities. The debt to equity ratio and the debt ratio are company V overloaded with debt