Question
Use the balance sheets of Glover shown below to calculate the following ratios for 2018 (round to the hundredths): (a) Current ratio. (b) Acid-test ratio.
Use the balance sheets of Glover shown below to calculate the following ratios for 2018 (round to the hundredths): (a) Current ratio. (b) Acid-test ratio. (c) Debt ratio. (d) Equity ratio.
Glover Company
Balance Sheets
December 31, 2018 and 2017
2018
2017
Assets:
Cash ............................................................
$ 43,000
$ 22,000
Accounts receivable ....................................
38,000
42,000
Merchandise inventory ...............................
61,000
52,000
Prepaid insurance ........................................
6,000
9,000
Long-term investments ...............................
49,000
20,000
Plant assets (net) .........................................
218,000
218,000
Total assets ..................................................
$415,000
$363,000
Liabilities and Equity:
Current liabilities ........................................
$ 62,000
$ 75,000
Long-term liabilities ...................................
45,000
36,000
Common stock ............................................
150,000
150,000
Retained earnings ........................................
158,000
102,000
Total liabilities and equity ..........................
$415,000
$363,000
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Financial And Managerial Accounting
Authors: Carl S. Warren, Jefferson P. Jones, William Tayler
16th Edition
0357714040, 9780357714041
