Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 12, Problem 3MC
The following is selected financial data from Block Industries:
How much does Block Industries have in current liabilities?
A. $19,800
B. $18,300
C. $12,300
D. $25,800
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Use the financial ratios of company A and company B to answer the questions below.
Company A Company B
Yr t+1 Year t Yr t+1 Year t
Current ratio 0.55 0.59 0.56 0.55
Accounts receivable turnover 6.22 6.25 5.06 4.87
Debt to total assets 40.5% 40% 67.8% 65.9%
Times interest earned 8.80 30.6 5.97 6.33
Free cash flows (in millions) ($3,819) $3,173 $168 $550
Return on stockholders’equity 7.7% 7.7% 26.6% 23.3%
Return on assets 4.3% 4.3% 8.9% 7.9%
Profit margin…
Find the following using the data bellow
Accounts receivable = 111,100,000
Current assets = 316,500,000
Total assets = 600,000,000
A. Return on assets
B. Common equity
C .Quick ratio
We are given the following information for Pettit Corporation.
Sales (credit)
Cash
Inventory
Current liabilities
Asset turnover
Current ratio
Debt-to-assets ratio
Receivables turnover
$2,068,000
150,000
923,000
763,000
a. Accounts receivable
b. Marketable securities
c. Capital assets.
d. Long-term debt
$
Current assets are composed of cash, marketable securities, accounts receivable, and inventory.
Calculate the following balance sheet items:
LA LA LA
$
$
1.00 times
2.60 times
$
40 %
4 times
517000
Chapter 12 Solutions
Principles of Accounting Volume 1
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