Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 17, Problem 7E
a.
To determine
Compute Current and acid-test ratio for current year and previous year.
b.
To determine
Provide conclusion towards company’s ratios.
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Current Position Analysis
The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years:
Previous Year
Current assets:
Cash
Marketable securities
Accounts and notes receivable (net)
Inventories
Prepaid expenses.
Total current assets.
Current liabilities:
Accounts and notes payable
(short-term)
Accrued liabilities
Total current liabilities
1. Working capital
2. Current ratio:
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b. The liquidity of Albertini has
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from the preceding year to the current year. The working capital, current ratio, and quick ratio have all
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Current Position Analysis
The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
Marketable securities
Accounts and notes receivable (net)
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Prepaid expenses
Total current assets
Current liabilities:
Accounts and notes payable
(short-term)
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799,500
327,000
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537,200.
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$458,200
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430,600
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207,000
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capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
Previous Year
from the preceding year to the current year. The working capital, current ratio, and quick ratio have all
. Most of these changes are the result of an
in
Compute the following ratios for the most recent two years, show all values in the computations:
1.Current ratio
2.Accounts receivable turnover
3.Debt ratio(TotalLiabilities/Total Assets, as a percentage)
4.Debt-to-equity ratio
Based on the results above,
what conclusions can you make about the liquidity and solvency of the
company?
Chapter 17 Solutions
Financial Accounting
Ch. 17 - Prob. 1DQCh. 17 - What is the advantage of using comparative...Ch. 17 - Prob. 3DQCh. 17 - How would the current and quick ratios of a...Ch. 17 - Prob. 5DQCh. 17 - What do the following data, taken from a...Ch. 17 - a. How does the return on total assets differ from...Ch. 17 - Prob. 8DQCh. 17 - Prob. 9DQCh. 17 - Prob. 10DQ
Ch. 17 - Prob. 1PEACh. 17 - Prob. 1PEBCh. 17 - Prob. 2PEACh. 17 - Vertical analysis Income statement information for...Ch. 17 - Prob. 3PEACh. 17 - Prob. 3PEBCh. 17 - Prob. 4PEACh. 17 - Prob. 4PEBCh. 17 - Prob. 5PEACh. 17 - Inventory analysis A company reports the...Ch. 17 - Prob. 6PEACh. 17 - Prob. 6PEBCh. 17 - Times interest earned A company reports the...Ch. 17 - Times interest earned A company reports the...Ch. 17 - Asset turnover A company reports the following:...Ch. 17 - Asset turnover A company reports the following:...Ch. 17 - Prob. 9PEACh. 17 - Prob. 9PEBCh. 17 - Common stockholders' profitability analysis A...Ch. 17 - Common stockholders' profitability analysis A...Ch. 17 - Earnings per share and price-earnings ratio A...Ch. 17 - Earnings per share and price-earnings ratio A...Ch. 17 - Vertical analysis of income statement Revenue and...Ch. 17 - Prob. 2ECh. 17 - Common-sized income statement Revenue and expense...Ch. 17 - Prob. 4ECh. 17 - Prob. 5ECh. 17 - Current position analysis The following data were...Ch. 17 - Prob. 7ECh. 17 - Current position analysis The bond indenture for...Ch. 17 - Accounts receivable analysis The following data...Ch. 17 - Prob. 10ECh. 17 - Inventory analysis The following data were...Ch. 17 - Inventory analysis QT, Inc. and Elppa Computers,...Ch. 17 - Ratio of liabilities to stockholders equity and...Ch. 17 - Prob. 14ECh. 17 - Ratio of liabilities to stockholders equity and...Ch. 17 - Prob. 16ECh. 17 - Profitability ratios The following selected data...Ch. 17 - Profitability ratios Ralph Lauren Corporation...Ch. 17 - Six measures of solvency or profitability The...Ch. 17 - Five measures of solvency or profitability The...Ch. 17 - Earnings per share, price-earnings ratio, dividend...Ch. 17 - Prob. 22ECh. 17 - Earnings per share, discontinued operations The...Ch. 17 - Prob. 24ECh. 17 - Unusual items Explain whether Colston Company...Ch. 17 - Horizontal analysis of income statement For 20Y2,...Ch. 17 - Prob. 2PACh. 17 - Effect of transactions on current position...Ch. 17 - Measures of liquidity, solvency, and profitability...Ch. 17 - Solvency and profitability trend analysis Addai...Ch. 17 - Prob. 1PBCh. 17 - Prob. 2PBCh. 17 - Effect of transactions on current position...Ch. 17 - Prob. 4PBCh. 17 - Solvency and profitability trend analysis Crosby...Ch. 17 - Financial statement analysis The financial...Ch. 17 - Prob. 1CPCh. 17 - Prob. 3CPCh. 17 - Prob. 4CPCh. 17 - Prob. 5CPCh. 17 - The average liabilities, average stockholders'...
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