Question
Transatlantic Venture Corporation reported the following information as of December 31 Cash $22,200 Accounts receivable, net 169,100 Inventory 68,300 Property, Plant and Equipment 132,800 Total
Transatlantic Venture Corporation reported the following information as of December 31
Cash $22,200
Accounts receivable, net 169,100
Inventory 68,300
Property, Plant and Equipment 132,800
Total assets $392,400
Accounts payable $49,200
Current portion of long-term debt 68,800
Long-term notes payable 100,000
Total liabilities 218,000
Common stock 100,000
Retained earnings 74,400
Total equity 174,400
Total liabilities and equity $392,400
Revenue $2,765,000
Operating expenses 2,472,600
Operating income 292,400
Interest expense 17,000
Income before income taxes 275,400
Income tax expense 103,800
Net Income $171,600
Required:
a) Work out the current ratio
b) Compute working capital
c) Work out the times interest earned ratio
d) Work out the debt to assets ratio
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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
Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M. Datar, George Foster
12th edition
978-0131495388
