Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Wildhorse Co. provides you with the following balance sheet information as of December 31, 2017. Current assets $11,500 Current liabilities $12,000 Long-term assets 27.030 Long-term
Wildhorse Co. provides you with the following balance sheet information as of December 31, 2017. Current assets $11,500 Current liabilities $12,000 Long-term assets 27.030 Long-term liabilities 14,530 Total assets $38,530 Stockholders' equity 12,000 Total liabilities and stockholders' equity $38,530 In addition, Wildhorse reported net income for 2017 of $16,000, income tax expense of $3,072, and interest expense of $1,248 Compute the current ratio and working capital for Wildhorse for 2017 (Round current ratio to 2 decimal places, es 2.75. Enter negative amounts using either a negative sign preceding the number eg 45 or parentheses es (45)) -75 In addition, Wildhorse reported net income for 2017 of $16,000, income tax expense of $3,072, and interest expense of $1,248. Compute the current ratio and working capital for Wildhorse for 2017. (Round current ratio to 2 decimal places, eg. 2.75. Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses e.g. (45)) Current ratio Working capital Assume that at the end of 2017, Wildhorse used $3,000 cash to pay off $3,000 of accounts payable. How would the current ratio and working capital have changed? (Round current ratio to 2 decimal places, eg. 2.75. Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45)) Current ratio Working capital :1 Compute the debt to assets ratio and the times interest earned for Wildhorse for 2017. (Round answers to 2 decimal places, eg. 2.75.) Debt to assets ratio Times interest earned ratio times
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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