Exercise 14-6A (Algo) Working capital and current ratio LO 14-2 On June 30, Year 3, Perez Company's total current assets were $501,000 and its total current liabilities were $279,500. On July 1 Year 3. Perez issued a short-term note to a bank for $40,200 cash. Required a. Compute Perez's working capital before and after issuing the note. b. Compute Perez's current ratio before and after issuing the note. (Round your answers to 2 decimal places.) Working capital b. Current ratio Before the Transaction After the Transaction
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- Exercise 13-7A (Algo) Working capital and current ratio LO 13-2 On June 30, Year 3, Finch Company's total current assets were $503,500 and its total current liabilities were $272,000. On July 1, Year 3, Finch issued a long-term note to a bank for $39,800 cash Required a. Compute Finch's working capital before and after issuing the note. b. Compute Finch's current ratio before and after issuing the note. Note: Round your answers to 1 decimal place. a Working capital b. Current ratio Before the transaction Check my work After the transactionExercise 14-6A (Algo) Working capital and current ratio LO 14-2 On June 30, Year 3, Finch Company's total current assets were $501,000 and its total current liabilities were $273,000. On July 1, Year 3, Finch issued a short-term note to a bank for $38,600 cash. Required a. Compute Finch's working capital before and after issuing the note. b. Compute Finch's current ratio before and after issuing the note. Note: Round your answers to 2 decimal places. a. Working capital b. Current ratio Before the Transaction After the TransactionQuestion 12 The following data pertain to Gliezel company on December 31, 20B: Trade accounts payable, including cost of goods received on consignment of P180,000 is 1,620,000; Accrued taxes payable, 150,000; Customers' deposit, 120,000; Cherry company as guarantor, 240,000; Bank overdraft, 66,000; Accrued electric and power bills, 72,000; Reserve for contingencies, 180,000. How much should be shown as total current liabilities? CHOICES 2,208,000 2,088,000 1,980,000 1,848,000
- Exercise 6-15 (Algo) Liquid assets and accounts receivable LO A1 Barga Company's net sales for Year 1 and Year 2 are $665,000 and $749,000, respectively. Its year-end balances of accounts receivable follow: Year 1, $64,000; and Year 2, $91,000. a. Complete the below table to calculate the days' sales uncollected at the end of each year. Note: Do not round intermediate calculations. Round your "Days' Sales Uncollected" answers to 1 decimal place. Year 1: Year 2: Choose Numerator: Accounts receivable $ $ Days' Sales Uncollected 1 Choose Denominator: X 1 60,000 1 94,000 / 1 X X X Days 365 365 365 = = = Days' Sales Uncollected Days' sales uncollected 31.3 days daysQuestion Content Area Assuming a 360-day year, the interest charged by the bank, at the rate of 7%, on a 90-day, discounted note payable of $91,392 is a.$3,199 b.$91,392 c.$6,397 d.$1,599Hide or show questions Progress:11/32 items On May 18, Rodriguez Co. issued an $84,000, 6%, 120-day note payable on an overdue account payable to Wilson Company. Assume that the fiscal year of Rodriguez ends on June 30. Which of the following relationships is true? a.Wilson is the creditor and debits Accounts Receivable b.Rodriguez is the borrower and debits Accounts Payable c.Rodriguez is the creditor and credits Accounts Receivable d.Wilson is the borrower and credits Accounts Payable
- Problem 84 (LAA) Summa Company revealed the following account balances on December 31, 2020 Accota payable Accounta receivable, net of allowance for doubtful accounts PS0.000 Accrued taxes Aecrued interest receivable Autherined sbare capital, 60,000 aharea. P100 par Building, net ofaccumulated depreciation of P500,000 3,000.000 Cash on hand Cash in bank Bond sinking fund Furniture and equipment, net ofaccumulated depreciation of P900,000 Iaventory Investment property Land Deferred tax liability Bonds payable due June 30, 2021 Notes payable Notes reoeivable Patent Ocher accrued liabilities Prepaid expenses Share premium Retained earninge appropristed for contingencies Retained eantings Share ubecription receivable Subscribed share capital E000 shares Unianoed share capital 1000,000 50.000 30,000 5,000.000 50.000 650.000 2000.000 1,500,000 1,200,000 700.000 1,000,000 650.000 2.000.000 850.000 200,000 370,000 150,000 100,000 300,000 200,000 2.700,000 500,000 L000,000 2.000,000 Required:…E4-10 Determining Financial Statement Effects of Interest on Two Notes LO4-1 Note 1: On April 1 of the current year, Warren Corporation received a $42,000, 6 percent note from a customer in settlement of a $42,000 open account receivable. According to the terms, the principal of the note and interest are payable at the end of 12 months. Warren's fiscal year ends on December 31. Note 2: On August 1 of the current year, to meet a cash shortage, Warren Corporation obtained a $42,000, 7 percent loan from a local bank. The principal of the note and interest expense are payable at the end of six months. Required: For the relevant transaction dates of each note, indicate the amounts and direction of effects on the elements of the statement of financial position and the statement of earnings. (Reminder: Assets = Liabilities + Shareholders' equity; Revenues - Expenses = Net earnings; and net earnings accounts are closed to retained earnings, a component of shareholders' equity.) (Do not round…Question 4 ESTIMATED TIME 10 minutes On April 1, 2023 Accounts receivable in the amount of $700,000 were assigned as collateral to the Banco Americano Company by Apollo, Inc., as security for a loanpf $600,000. The bank assessed a 4% finance charge on the face amount of the loan, and the note bears interest at 8% per year. During the month of April, Apollo collected $390,000 on assigned accounts. This amount was remitted to the bank along with one month's interest on the note on May 1, 2022. Instructions Prepare all the journal entries for Apollo Inc. associated with the transfer of the accounts receivable, the loan, and the remittance to the bank. DELL
- Question 8 Calculate the average collection period for T&K Inc. if its accounts receivables were $600 at the beginning of a year in which the firm generated $9,125 of sales? O A. 67 days OB. 18 days OC. 24 days OD. 49 daysQuestion 13 Calculate the average collection period for Roman Inc. if its accounts receivables were $550 at the beginning of a year in which the firm generated $3,000 of sales? OA 61 days OB. 73 days OC. 60 days OD.67 daysDebs Co balance sheet extract for the year ended 31.12.20X3 20X2 20X3 Current liabilities S'000 S'000 Accrued debenture interest - 15 Interest payable is shown in the income statement of 20X3 as being $30,000. There are no bank loans or overdrafts. Additionally, you are told that a new finance lease agreement was taken out in the year. Total repayments are $5,000, of which $1,500 is interesting only. At present all $5,000 has been debited to the finance lease liability account. Required Prepare relevant extracts from Debs Co.'s cash flow statement