FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
19th Edition
ISBN: 9781119493624
Author: Kimmel
Publisher: WILEY
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The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2016.
INCOME STATEMENT OF QUICK BURGER CORP., 2016
(Figures in $ millions)
Net sales
Costs
Depreciation
Earnings before interest and taxes (EBIT)
Interest expense
Pretax income
Taxes
Net income
Assets
Current assets
Cash and marketable securities
Receivables
Inventories
Other current assets
Total current assets.
Fixed assets
Property, plant, and equipment
Intangible assets (goodwill)
Other long-term assets
Total assets
2016
BALANCE SHEET OF QUICK BURGER CORP., 2016
(Figures in $ millions)
2,340
1,379
126
1,093
4,938
$ 27,571
17,573
1,406
$ 8,592
24,681
2,808
2,987
35,414
521
8,071
2,825
$ 5,246
2015 Liabilities and Shareholders' Equity
Current liabilities
Debt due for repayment
Accounts payable
Total current liabilities
2,340
1,339
121
620
4,420
Long-term debt
22,839 Other long-term liabilities
2,657 Total liabilities
3,103 Total shareholders' equity
33,019
Total liabilities and…
Required:
1. Calculate the following risk ratios for 2024:
2. When we compare two companies, can one have a higher current ratio while the other has a higher acid-test ratio?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Calculate the following risk ratios for 2024: (Round your answers to 1 decimal place.)
Risk Ratios
a. Receivables turnover ratio
b. Inventory turnover ratio
c. Current ratio
d. Acid-test ratio
e. Debt to equity ratio
times
times
%
Required 1
Required 2 >
The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Dux Company.
Additional information from Dux's accounting records is provided also.
DUX COMPANY
Comparative Balance Sheets
December 31, 2018 and 2017
(S in 8ees)
2018
2017
Assets
$ 20
50
Cash
Accounts receivable
Less: Allowance for uncollectible accounts
Dividends receivable
Inventory
Long-term investment
Land
Buildings and equipment
Less: Accumulated depreciation
$ 33
48
(4)
(3)
2
55
50
15
1e
70
48
250
(50)
$ 369
225
(25)
$ 420
Liabilities
$ 13
2
$ 20
Accounts payable
Salaries payable
Interest payable
Income tax payable
Notes payable
Bonds payable
Less: Discount on bonds
Shareholders' Equity
4
2
7.
30
95
78
(2)
(3)
Common stock
210
200
Paid-in capital-excess of par
Retained earnings
Less: Treasury stock
24
20
45
47
(8)
$ 420
$ 369
DUX COMPANY
Income Statement
For the Year Ended December 31, 2018
($ in Bees)
Revenues
$ 200
3 $ 203
Sales revenue
Dividend revenue
Expenses
Cost of…
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