Question
Use the following information to answer the following 5 questions. XYZ Company Balance Sheet as of December 31, 20X7 & 20X8 ASSETS: 20X7 20X8 Current
Use the following information to answer the following 5 questions. XYZ Company Balance Sheet as of December 31, 20X7 & 20X8
ASSETS:
20X7
20X8
Current assets:
Cash
$10,000
$12,000
Accounts receivable
20,000
25,000
Inventory
16,000
24,000
Prepaid insurance
4,000
3,000
50,000
64,000
Property & equipment
76,000
84,000
Total assets
$126,000
$148,000
LIABILITIES AND STOCKHOLDERS EQUITY:
Current liabilities:
Accounts payable
$15,000
$17,000
Other payables
3,000
7,000
18,000
24,000
Long term notes payable
35,000
40,000
Total liabilities
53,000
64,000
Stockholder's equity
Capital stock, 2,400 shares outstanding
24,000
24,000
Retained earnings
49,000
60,000
73,000
84,000
Total liabilities and stockholders equity
$126,000
$148,000
XYZ Company Income Statement for the years ended December 31, 20X7 & 20X8
20X7
20X8
Sales revenues
$200,000
$250,000
Cost of goods sold
120,000
140,000
80,000
110,000
Selling and admin. expenses
40,000
65,000
40,000
65,000
Income tax expense
15,000
25,000
Net income
$25,000
$40,000
Dividends paid in 20X8 amounted to $29,000. Calculate the 12/31/X8 current ratio (round to
nearest tenth).
18.
Calculate the 12/31/X8 current ratio (round to nearest tenth).
1.5
2.7
2.5
.5
none of the above
19.
Calculate the 20X8 accounts receivable turnover assuming all sales during the year are made on account (round to the nearest tenth).
8.9
10.0
11.1
12.5
none of the above
20.
Calculate the 20X8 average number of days of inventory on hand (round to the nearest tenth of a day).
7.0
52.1
56.2
62.6
21.
Calculate the 20X8 EPS (round to nearest penny).
$25.00
$10.42
$4.58
$16.67
none of the above
22.
Calculate the % increase in accounts receivable during the year ended 20X8.
10%
20%
50%
125%
none of the above
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plz explain!
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