Corporate Financial Accounting
15th Edition
ISBN: 9781337398169
Author: Carl Warren, Jeff Jones
Publisher: Cengage Learning
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Textbook Question
Chapter 4, Problem 4.4MAD
Analyze Under Armour
The following year-end data were taken from recent balance sheets, of Under Armour, Inc. (UA) (in millions):
| December 31 | ||
| Year 2 | Year 1 | |
| Current assets | $ 1,965.2 | $1,498.8 |
| Current liabilities | 685.8 | 478.8 |
a. Compute the
b. 
What conclusions concerning the company’s ability to meet its short-term obligations can you draw from part (a)?
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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:
Current Year
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
$410,400
475,200
194,400
712,800
367,200
$2,160,000
3. Quick ratio
b. The liquidity of Albertini has
these changes are the result of an
$313,200
226,800
$540,000
a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
Current Year
Previous Year
$
$338,400
380,700
126,900
516,100
329,900
$1,692,000
$329,000
141,000
$470,000
from the preceding year to the current year. The working capital, current ratio, and quick ratio have all
in current assets relative to current liabilities.…
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)
Inventories
Prepaid expenses
Total current assets
Current liabilities:
Accounts and notes payable
(short-term)
Accrued liabilities
Total current liabilities
a. Determine for each year (1) the working
Current Year
1. Working capital
2. Current ratio
3. Quick ratio
b. The liquidity of Nilo has
current assets relative to current liabilities.
$690,500
799,500
327,000
1,042,800
537,200.
$3,397,000
$458,200
$579,600
652,100
217,300
673,400
430,600
$2,553,000
$483,000
331,800
207,000
$790,000
$690,000
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
The following data were taken from the financial statements of Gates Inc. for the current fiscal year.
$1,202,600
Property, plant, and equipment (net)
Liabilities:
$173,000
Current liabilities
859,000
Note payable, 6%, due in 15 years
$1,032,000
Total liabilities
Stockholders' equity:
Preferred $4 stock, $100 par (no change during year)
$619,200
Common stock, $10 par (no change during year)
619,200
Retained earnings:
$660,000
Balance, beginning of year
Net income
$974,000
314,000
Preferred dividends
$24,768
148,400
Common dividends
123,632
Balance, end of year
825,600
Total stockholders' equity
$2,064,000
$19,922,100
Sales
Interest expense
$51,540
Assuming that total assets were $2,941,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place.
Chapter 4 Solutions
Corporate Financial Accounting
Ch. 4 - Prob. 1DQCh. 4 - Describe the nature of the assets that compose the...Ch. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - Why are closing entries required at the end of an...Ch. 4 - Prob. 6DQCh. 4 - What is the purpose of the post-closing trial...Ch. 4 - Prob. 8DQCh. 4 - Which step of the accounting cycle is optional?Ch. 4 - Prob. 10DQ
Ch. 4 - Flow of accounts into financial statements The...Ch. 4 - Statement of stockholders equity Scott Lockhart...Ch. 4 - Classified balance sheet The following accounts...Ch. 4 - Closing entries After the accounts have been...Ch. 4 - Accounting cycle From the following list of steps...Ch. 4 - Working capital and current ratio Current assets...Ch. 4 - Flow of accounts into financial statements The...Ch. 4 - Classifying accounts Balances for each of the...Ch. 4 - Financial statements from the end-of-period...Ch. 4 - Financial statements from the end-of-period...Ch. 4 - Income statement The following account balances...Ch. 4 - Income statement; net loss The following revenue...Ch. 4 - Income statement FedEx Corporation (FDX) had the...Ch. 4 - Statement of stockholders equity Climate Control...Ch. 4 - Statement of stockholders equity; net loss...Ch. 4 - Classifying assets Identify each of the following...Ch. 4 - Balance sheet classification At the balance sheet...Ch. 4 - Balance sheet Dynamic Weight Loss Co. offers...Ch. 4 - Balance sheet The following balance sheet was...Ch. 4 - Identifying accounts to be closed From the list...Ch. 4 - Closing entries with net income Automation...Ch. 4 - Closing entries with net loss Summit Services Co....Ch. 4 - Identifying permanent accounts Which of the...Ch. 4 - Post-closing trial balance An accountant prepared...Ch. 4 - Steps in the accounting cycle Rearrange the...Ch. 4 - Appendix 1 Completing an end-of-period spreadsheet...Ch. 4 - Appendix 1 Adjustment data on an end-of-period...Ch. 4 - Prob. 4.22EXCh. 4 - Appendix 1 Financial statements from an...Ch. 4 - Appendix 1 Adjusting entries from an end-of-period...Ch. 4 - Appendix 1 Closing entries from an end-of-period...Ch. 4 - Appendix 2 Reversing entry The following adjusting...Ch. 4 - Appendix 2 Adjusting and reversing entries On the...Ch. 4 - Appendix 2 Adjusting and reversing entries On the...Ch. 4 - Appendix 2 Entries posted to wages expense account...Ch. 4 - Appendix 2 Entries posted to wages expense account...Ch. 4 - Financial statements and closing entries 8.Net...Ch. 4 - Financial statements and closing entries Foxy...Ch. 4 - accounts, adjusting entries, financial statements,...Ch. 4 - Net Income: 51,150 Ledger accounts, adjusting...Ch. 4 - Net income: 43,475 Complete accounting cycle For...Ch. 4 - Financial statements and closing entries Last...Ch. 4 - Financial statements and closing entries The...Ch. 4 - Income: 27,350 accounts, adjusting entries,...Ch. 4 - Ledger accounts, adjusting entries, financial...Ch. 4 - Net income: 53,77S Complete accounting cycle For...Ch. 4 - Comprehensive Problem 1 8 Net income. 31,425...Ch. 4 - Working Capital and Current Ratio Analyze and...Ch. 4 - Analyze and compare Zynga, Electronic Arts, and...Ch. 4 - Analyze and compare Foot Locker and The Finish...Ch. 4 - Analyze Under Armour The following year-end data...Ch. 4 - Prob. 4.5MADCh. 4 - Analyze and compare Alphabet (Google) and...Ch. 4 - Prob. 4.1TIFCh. 4 - Prob. 4.3TIFCh. 4 - Financial statements The following is an excerpt...Ch. 4 - Prob. 4.5TIF
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