Question
The following data are provided: December 31 2015 2014 Cash $750,000 $500,000 Accounts receivable (net) 800,000 600,000 Inventories 1,300,000 1,100,000 Plant assets (net) 3,500,000 3,250,000
The following data are provided: December 31 2015 2014 Cash $750,000 $500,000 Accounts receivable (net) 800,000 600,000 Inventories 1,300,000 1,100,000 Plant assets (net) 3,500,000 3,250,000 Accounts payable 550,000 400,000 Income taxes payable 100,000 50,000 Bonds payable 700,000 700,000 10% Preferred stock, $50 par 1,000,000 1,000,000 Common stock, $10 par 1,200,000 900,000 Paid-in capital in excess of par 800,000 650,000 Retained earnings 2,000,000 1,750,000 Net credit sales 6,400,000 Cost of goods sold 4,200,000 Operating expenses 1,450,000 Net income 750,000 Additional information: Depreciation included in cost of goods sold and operating expenses is $610,000. On May 1, 2015, 30,000 shares of common stock were issued. The preferred stock is cumulative.
The preferred dividends were not declared during 2015. At December 31, 2015, the acid-test ratio was
1,550 1,080.
2,100 800.
2,850 650.
1,550 650.
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