Evaluate the firm’s short-term solvency for 2008 by computing: a. Working Capitalb. Current Ratioc. Acid-test/Quick Ratio TOTAL POINTS = 93/93The following are the balance sheet and income statement data ofJowie CorporationBalance Sheet Accounts (De ce mber 31)CashMarketable Securities20072008150,000283,000850,0001,000,000Accounts Receivable, net500,0001,000,000Inventories750,000500,000Land500,000500,000Building, netMachinery and equipment (net)GoodwillDeferred ChargesNotes, Payable, TradeAccounts Payable, Trade550,000500,0001,700,0001,500,000400,000400,000100,00090,000100,000150,000610,000790,000PayableLong-term Notes- Due 201815% Preferred Stock, P100 par40,00060,0002,500,0002,250,000500,000500,000Common Stock, P10 parRetain Earnings1,500,0001,500,000250,000523,0002008 Income Statement AccountsSalesSales Returns and Allowances5,250,000250,000Inventory, Dec. 31, 2008Inventory, Dec. 31, 2007PurchasesSelling ExpensesAdministrative Expenses(includingDepreciation of P250,000)Interest on Long-term NotesIncome Taxes, 35%Additional Information:Dividends paid on preferred stockDividends paid on common stock500,000750,0002,750,000400,000600,000250,000175,0002162,000Market price per share on common3stock18

Current Assets Cash 283000 Account receivables 1000000 Inventories 500000 Total…

The following are the balance sheet and income statement data of Jowie Corporation Balance Sheet Accounts (De cember 31) Cash Marketable Securities 2007 2008 150,000 283,000 850,000 1,000,000 Accounts Receivable, net 500,000 1,000,000 Inventories Land 750,000 500,000 550,000 500,000 500,000 500,000 Building, net Machinery and equipment (net) Goodwill Deferred Charges |Notes, Payable, Trade Accounts Payable, Trade Expenses Payable Long-term Notes- Due 2018 15% Preferred Stock, P100 par 1,700,000 400,000 1,500,000 400,000 100,000 90,000 150,000 100,000 610,000 40,000 790,000 60,000 2,250,000 2,500,000 500,000 500,000 Common Stock, P10 par Retain Earnings 1,500,000 1,500,000 250,000 523,000 2008 Income Statement Accounts |Sales Sales Returns and Allowances Inventory, Dec. 31, 2008 Inventory, Dec. 31, 2007 Purchases |Selling Expenses Administrative Expenses(including Depreciation of P250,000) 5,250,000 250,000 500,000 750,000 2,750,000 400,000 600,000 Interest on Long-term Notes 250,000 Income Taxes, 35% Additional Information: Dividends paid on preferred stock Dividends paid on common stock 1 75,000 2 162,000 Market price per share on common 3 stock 18

The following are the balance sheet and income statement data of Jowie Corporation Balance Sheet Accounts (De cember 31) Cash Marketable Securities 2007 2008 150,000 283,000 850,000 1,000,000 Accounts Receivable, net 500,000 1,000,000 Inventories Land 750,000 500,000 550,000 500,000 500,000 500,000 Building, net Machinery and equipment (net) Goodwill Deferred Charges |Notes, Payable, Trade Accounts Payable, Trade Expenses Payable Long-term Notes- Due 2018 15% Preferred Stock, P100 par 1,700,000 400,000 1,500,000 400,000 100,000 90,000 150,000 100,000 610,000 40,000 790,000 60,000 2,250,000 2,500,000 500,000 500,000 Common Stock, P10 par Retain Earnings 1,500,000 1,500,000 250,000 523,000 2008 Income Statement Accounts |Sales Sales Returns and Allowances Inventory, Dec. 31, 2008 Inventory, Dec. 31, 2007 Purchases |Selling Expenses Administrative Expenses(including Depreciation of P250,000) 5,250,000 250,000 500,000 750,000 2,750,000 400,000 600,000 Interest on Long-term Notes 250,000 Income Taxes, 35% Additional Information: Dividends paid on preferred stock Dividends paid on common stock 1 75,000 2 162,000 Market price per share on common 3 stock 18

Foundations of Business - Standalone book (MindTap Course List)

4th Edition

ISBN:9781285193946

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Chapter15: Using Management And Accounting Information

Section: Chapter Questions

Problem 5DQ

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