QUESTIONS 16 to 20 Balance Sheet for Ace Company at December 31, 2009 ASSETS Current Assets Cash 10,000 Accounts Receivable 15,000 Raw Materials Inventory 50,000 Finished Goods Inventory 40,000 Total Current Assets Long Term Assets 150,000 Equipment Accumulated depreciation 100,000 Buildings 500,000 Accumulated depreciation 250,000 Land 100,000 Total Long Term Assets TOTAL ASSETS LIABILITIES AND OWNERS' EQUITY Current Liabilities Accounts Payable Income Taxes Payable in 6 months 10,000 2,000 Loan due in six (6) months 80,000 Total Current Liabilities Long Term Liabilities Loan due in two (2) years 350,000 TOTAL LIABILITIES 40,000 33,000 Common Stock: 20,000 shares @ $2 Retained Earnings Total Owners' Equity TOTAL LIABILITIES & OWNERS' EQUITY Ace Company Income and Expense Statement January 1 to December 31, 2009 REVENUES Sales 350,000 Cost of Goods Sold 200,000 Net sales EXPENSES Operating Expenses Depreciation Expense 20,000 30,000 10,000 Interest Expense Total Expenses PROFIT BEFORE TAXES Income Taxes @50% of Profit Before Taxes PROFIT AFTER TAXES 16. Ace Company's quick-asset or acid-test ratio (2 decimals) on December 31, 2009 was a) 0.77 b) 0.27 c) 1.30 d) 1.85 None of the above answers 17. Ace Company's "equity ratio" (2 decimals) on December 31, 2009 was 0.14 10.4 c) 0.906 d) 6.37 None of the above answers 18. a) Ace company's "profitability ratio" (2 decimals) on December 31, 2009 was 10.8% 5.4% C) 8.7% 2% None of the above answers d) b) d) 19. Ace Company's after-tax cash flow for 2009 was $90,000 $45,500 $75,000 $135.000 None of the above answers The answers are: 16) B 17) A 18) C 19) C Please show the steps to getting these answers. QUESTIONS 16 to 20 Balance Sheet for Ace Company at December 31, 2009 ASSETS Current Assets Cash 10,000 Accounts Receivable 15,000 Raw Materials Inventory 50,000 Finished Goods Inventory 40,000 Total Current Assets Long Term Assets 150,000 Equipment Accumulated depreciation 100,000 Buildings 500,000 Accumulated depreciation 250,000 Land 100,000 Total Long Term Assets TOTAL ASSETS LIABILITIES AND OWNERS' EQUITY Current Liabilities Accounts Payable Income Taxes Payable in 6 months 10,000 2,000 Loan due in six (6) months 80,000 Total Current Liabilities Long Term Liabilities Loan due in two (2) years 350,000 TOTAL LIABILITIES 40,000 33,000 Common Stock: 20,000 shares @ $2 Retained Earnings Total Owners' Equity TOTAL LIABILITIES & OWNERS' EQUITY Ace Company Income and Expense Statement January 1 to December 31, 2009 REVENUES Sales 350,000 Cost of Goods Sold 200,000 Net sales EXPENSES Operating Expenses Depreciation Expense 20,000 30,000 10,000 Interest Expense Total Expenses PROFIT BEFORE TAXES Income Taxes @50% of Profit Before Taxes PROFIT AFTER TAXES 16. Ace Company's quick-asset or acid-test ratio (2 decimals) on December 31, 2009 was a) 0.77 b) 0.27 c) 1.30 d) 1.85 None of the above answers 17. Ace Company's "equity ratio" (2 decimals) on December 31, 2009 was 0.14 10.4 c) 0.906 d) 6.37 None of the above answers 18. a) Ace company's "profitability ratio" (2 decimals) on December 31, 2009 was 10.8% 5.4% C) 8.7% 2% None of the above answers d) b) d) 19. Ace Company's after-tax cash flow for 2009 was $90,000 $45,500 $75,000 $135.000 None of the above answers The answers are: 16) B 17) A 18) C 19) C Please show the steps to getting these answers