Question
The 2020 and 2021 balance sheets forSandhillManufacturing Company appear below along with selected financial information.Sandhilldeclared no dividends during either year, and had1,000shares of stock outstanding
The 2020 and 2021 balance sheets forSandhillManufacturing Company appear below along with selected financial information.Sandhilldeclared no dividends during either year, and had1,000shares of stock outstanding throughout each year.
2021 2020
Current Assets
Cash $26,000 $24,992
Accounts receivable, net 30,000 29,008
Inventory 41,000 38,000
Total current assets 97,000 92,000
Plant & equipment, net 70,000 50,000
Total assets $167,000 $142,000
Current liabilities $30,000 $40,000
Noncurrent liabilities 70,000 50,000
Total Liabilities 100,000 90,000
Stockholders' equity
Common stock 12,000 12,000
Additional paid-In capital 14,000 14,000
Retained earnings 41,000 26,000
Total stockholders' equity 67,000 52,000
Total liabilities and stockholders' equity $167,000 $142,000
(a)
Calculate the acid-test ratio for 2020.(Round answer to 2 decimal places, e.g. 52.75.)
Acid-test ratio_____
Accounts receivable_____times
Current ratio$___
Working Capital____
Debt Ratio_____
Debt to equity ratio______
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Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
18th edition
125969240X, 978-1259692406
