Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Whispering Winds Company provides you with the following balance sheet information as of December 31, 2022 Current assets $10,800 Current liabilities $12.950 Long-term assets
Whispering Winds Company provides you with the following balance sheet information as of December 31, 2022 Current assets $10,800 Current liabilities $12.950 Long-term assets 25,000 Long-term liabilities 9.900 Stockholders' equity 12,950 $35,800 Total liabilities and stockholders' equity $35.800 Total assets In addition, Whispering Winds reported net income for 2022 of $15,650, income tax expense of $3,130, and interest expense of $1,500. (a) Compute the current ratio and working capital for Whispering Winds for 2022. (Round ratio to 2 decimal places, e.g. 2.75:1. Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) Current ratio Working capital (b) Assume that at the end of 2022, Whispering Winds used $3,200 cash to pay off $3,200 of accounts payable. How would the current ratio and working capital have changed? (Round ratio to 2 decimal places, eg. 2.75:1. Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45).) Current ratio Working capital :1 Current ratio Working capital (b) Assume that at the end of 2022, Whispering Winds used $3,200 cash to pay off $3.200 of accounts payable. How would the current ratio and working capital have changed? (Round ratio to 2 decimal places, e.g. 2.75:1. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Current ratio Working capital (c) Compute the debt to assets ratio and the times interest earned ratio for Whispering Winds for 2022. (Do not use the information from (b) to determine the solution.) (Round answers to 1 decimal place, e.g. 15.2 or 15.2%) Debt to assets ratio 11 Times interest earned ratio %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
A Working Capital Current assets Current liabilities 10800 12950 2150 Q...Get Instant Access to Expert-Tailored 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