Question
SheridanManufacturing Company reported net sales (all credit) of $138,000and $157,875for 2020 and 2021, respectively and net income of $42,000and $50,000for 2020 and 2021, respectively.Sheridan's 2020
SheridanManufacturing Company reported net sales (all credit) of $138,000and $157,875for 2020 and 2021, respectively and net income of $42,000and $50,000for 2020 and 2021, respectively.Sheridan's 2020 and 2021 balance sheets appear below:
2020 2021
Current Assets
Cash $34,000 $33,000
Accounts receivable, net 38,000 37,000
Inventory 49,000 47,960
Total current assets 121,000 117,960
Plant & equipment, net 78,000 58,040
Total assets $199,000 $176,000
Current liabilities $38,000 $47,960
Noncurrent liabilities 78,000 57,992
Total Liabilities 116,000 105,952
Stockholders' equity
Common stock 20,000 19,976
Additional paid-In capital 22,000 22,000
Retained earnings 41,000 28,072
Total stockholders' equity 83,000 70,048
Total liabilities and stockholders' equity $199,000 $176,000
Accounts receivable_____times
Current ratio$___
Working Capital____
Debt Ratio_____
Acid-Test_____
Debt to equity ratio______
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started