Question
Tenacle Acres Company and Subsidiaries Income Statement for 2015 (000 dollars) Sales $94,001 Cost of Goods Sold 46,623 Gross Profit 47,378 Selling and Administrative Expenses
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Tenacle Acres Company and Subsidiaries Income Statement for 2015 (000 dollars) |
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Sales | $94,001 | |
Cost of Goods Sold | 46,623 | |
Gross Profit | 47,378 | |
Selling and Administrative Expenses | 28,685 | |
Depreciation and R&D Expense (both tax deductibles) | 5,752 | |
EBIT or Operating Income | 12,941 | |
Interest Expense | 48 | |
Interest Income | 427 | |
Earnings Before Taxes (EBT) | 13,320 | |
Income Taxes | 4,700 | |
Net Income (NI) | 8,620 | |
Earnings per Share | 1.72 | |
Tenacle Acres Company and Subsidiaries Balance Sheet as of End of 2015 (000 dollars) | ||
Cash | 5,534 | |
Marketable Securities | 952 | |
Accounts Receivable (gross) | 14,956 | |
Less Allowance for Bad Debts | 211 | |
Accounts Receivable (net) | 14,745 | |
Inventory | 10,733 | |
Prepaid Expenses | 3,234 | |
Plant and Equipment (net) | 57,340 | |
Land | 1,010 | |
Long-Term Investments | 2,503 | |
Total Assets: | 66,971 | |
Liabilities | ||
Accounts Payable | 3,253 | |
Notes Payable | - | |
Accrued Expenses | 6,821 | |
Bonds Payable | 2,389 | |
Stockholders' Equity | ||
Common Stock | 8,549 | |
Retained Earnings | 45,959 | |
Total Liabilities and Equity | 66,971 |
Problem 5-7 | |
Calculate the following liquidity ratios for the end of 2015. [PLEASE SHOW WORK] a. Current ratio b. Quick ratio Comment on the companys ability to pay off short-term debts. |
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