As loan analyst for Sage Bank, you have been presented the following information. Assets Cash Receivables Inventories Total current assets. Other assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Capital stock and retained earnings Total liabilities and stockholders' equity Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Capital stock and retained earnings Total liabilities and stockholders' equity Annual sales Rate of gross profit on sales $319,000 419.000 652.000 $1,390,000 $948,000 30 % Toulouse Co. $119,000 226,000 562,000 907,000 483,000 $1,390,000 $319,000 419,000 652,000 $1.390.000 $350,000 483,000 969,000 $1,802,000 $1,453,000 40 % Lautrec Co. $332,000 298,000 536,000 1,166,000 636,000 $1,802,000 $350,000 483,000 969,000 $1.802.000 Each of these companies has requested a loan of $50,000 for 6 months with no collateral offered. Because your bank has reached its quota for loans of this type, only one of these requests is to be granted. (a1) Compute the various ratios for each company. Assume that the ending account balances are representative of the entire year. (Round answer to 2 decimal places, e.g. 2.25.)
As loan analyst for Sage Bank, you have been presented the following information. Assets Cash Receivables Inventories Total current assets. Other assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Capital stock and retained earnings Total liabilities and stockholders' equity Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Capital stock and retained earnings Total liabilities and stockholders' equity Annual sales Rate of gross profit on sales $319,000 419.000 652.000 $1,390,000 $948,000 30 % Toulouse Co. $119,000 226,000 562,000 907,000 483,000 $1,390,000 $319,000 419,000 652,000 $1.390.000 $350,000 483,000 969,000 $1,802,000 $1,453,000 40 % Lautrec Co. $332,000 298,000 536,000 1,166,000 636,000 $1,802,000 $350,000 483,000 969,000 $1.802.000 Each of these companies has requested a loan of $50,000 for 6 months with no collateral offered. Because your bank has reached its quota for loans of this type, only one of these requests is to be granted. (a1) Compute the various ratios for each company. Assume that the ending account balances are representative of the entire year. (Round answer to 2 decimal places, e.g. 2.25.)
Chapter3: Financial Statements, Tools, And Budgets
Section: Chapter Questions
Problem 3DTM
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Transcribed Image Text:As loan analyst for Sage Bank, you have been presented the following information.
Assets
Cash
Receivables
Inventories
Total current assets.
Other assets
Total assets
Liabilities and Stockholders' Equity
Current liabilities
Long-term liabilities
Capital stock and retained earnings
Total liabilities and stockholders' equitv
Liabilities and Stockholders' Equity
Current liabilities
Long-term liabilities
Capital stock and retained earnings
Total liabilities and stockholders' equity
Annual sales
Rate of gross profit on sales
$319,000
419,000
652,000
$1,390,000
$948,000
30 %
Toulouse Co.
$119,000
226,000
562,000
907,000
483,000
$1,390,000
$319,000
419,000
652,000
$1.390.000
$350,000
483,000
969,000
$1,802,000
$1,453,000
40 %
Lautrec Co.
$332,000
298,000
536,000
1,166,000
636,000
$1,802,000
$350,000
483,000
969,000
$1.802.000
Each of these companies has requested a loan of $50,000 for 6 months with no collateral offered. Because your bank has reached its
quota for loans of this type, only one of these requests is to be granted.
(a1) Compute the various ratios for each company. Assume that the ending account balances are representative of the entire year.
(Round answer to 2 decimal places, e.g. 2.25.)
Transcribed Image Text:Each of these companies has requested a loan of $50,000 for 6 months with no collateral offered. Because your bank has reached its
quota for loans of this type, only one of these requests is to be granted.
(a1) Compute the various ratios for each company. Assume that the ending account balances are representative of the entire year.
(Round answer to 2 decimal places, e.g. 2.25.)
Current ratio
Acid-test ratio
Accounts receivable turnover
Inventory turnover
Cash to current liabilities
Toulouse Co.
:1
:1
times
times
:1
Lautrec Co.
:1
:1
times
times
:1
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