Calculating the Current Ratio and the Quick (or Acid-Test) Ratio LoLo Lemon Company has current assets equal to $500,000. Of these, $300,000 is cash, $75,000 is accounts receivable, $125,000 is inventory, and the remainder is marketable securities. Current liabilities total $425,000. Required: Note: Round answers to two decimal places.
Q: Net income Preferred dividends Average stockholders' equity Average common stockholders' equity…
A: The ratio analysis helps to analyse the financial statements of the business on the basis of various…
Q: She can likely make it appear lower by classifying:
A: The accountant is the person who records all the transaction of the company, prepare financial…
Q: udes the following Azure a tancy mobile cover trader has shown an amount of 15,6/0 in his books of…
A: Organisation makes statement of cost consist of various expenses like selling, distribution,…
Q: Splish Corporation borrowed $58,500 on November 1, 2020, by signing a $60,000, 3-month,…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Case 2: ARC Corporation is operating in a very competitive environment and therefore cannot adopt…
A: Given that market price per unit is $65 Number of units produced = 20,000 units Required investment…
Q: An entity included the following items in inventory at year-end: Goods out on consignment at sales…
A: An entity included the following items in inventory at year-end: Goods out on consignment at sales…
Q: The company uses the absorption costing system Required A) Calculate the cost of producing one unit.…
A: Cost of products 1) Direct materials = €900 Direct labour = €1000 Variable production OH =…
Q: Need help with 1 and 4, 4b)
A: The payment for wages can be weekly, biweekly, monthly bi-monthly, etc. When payment for wages is…
Q: The entry to record a sale of P1,800 with terms of 2/10, n/30 will include a a. debit to Sales…
A: Journal entries are used by the companies, firms, NPO, etc. to keep a record of the transactions…
Q: Analytical Reports are reports that provide data or findings, analysis, and conclusion. Select one:…
A: The analytical report is the report that contains information along with necessary analysis,…
Q: Highlight F Strikethrough A company sells two products and has calculated the following information…
A: Variance is the deviation which is computed after comparing actual results and standard set for the…
Q: Miracle Body Corporation reports net income of P70,000 at the end of its first year of operations.…
A: The journal entries are prepared to record the day to day transactions of the business on regular…
Q: Prepare in good form an income statement for Franklin Kite Co. Take your calculations all the way to…
A: Income Statement - Income Statement is the statement the includes all the income earned and Expense…
Q: Considering the variance analysis, which of the following statements is true? O a. When there is…
A:
Q: Anytime fitness has two operating departments- Programming & Classes and Individual fitness. There…
A: Allocation of service department costs to operating departments Costs incurred by service…
Q: Last year, Toby's Hats had net sales of $45,000,000 and cost of goods sold of $29,000,000. Toby's…
A: Introduction: Accounts receivable turnover ratio : Division of Average Accounts receivable with Net…
Q: where is the 24100 for gail sabatini capital coming from
A: A Journal entry is a primary entry that records the financial transactions initially. The…
Q: SixthZ currently produces and sells 1,200 treehouses per year and sells them at $1200 per treehouse.…
A: Introduction: Operating income is the money left over after deducting operating expenses and the…
Q: ACME Corp’s balance sheet reported that it had $650,000 in liabilities and $275,000 in equity. On…
A: Return on Assets: Return on assets (ROA), also known as return on total assets, is a measurement of…
Q: All of the following, except one, are requisites in the carry-over of net operating loss? There…
A: Carry over of Net operating Loss: It is the provision for tax that allows organization to carry…
Q: Total Quality Management (TQM) is founded on the premise that an organisation must continuously…
A: Prevention costs are the costs incurred as a result of working to reduce poor quality. Examples…
Q: A/R: 5,000,000(debit) Allowance for Doubtful Accounts: 50,000 (debit) Gross Credit Sales:…
A: Uncollectible accounts are those Receivables which the management estimates to become bad in near…
Q: Question Moon Furniture is considering investing in new garden chairs this year. The shop forecasts…
A: EMV refers to expected monetary value which shows the expected profit or loss of a decision by…
Q: Question 2 Shelton Distribution markets CDs of numerous performing artists. At the beginning of…
A: Using FIFO method, the units purchased first are to be sold first. Using LIFO method, the units…
Q: Anthoney Inc's trial balance contains the following balances: Cash $535 Accounts Receivable $278…
A: Introduction: Trial Balance: All the final ledger accounts balances are posted in Trial balance to…
Q: une 30 and December 31. On March 31,1989, Taylor converts $200,000 of the bonds. Both Taylor and…
A: Conversion of debentures The procedure by which a Debenture Holder decides to convert his or her…
Q: How many common shares are unissued? 5. How many common shares were re-acquired by the company? 6.…
A: Given in the question: Authorized Preferred Number of stocks = 2,000 Authorized Common Number of…
Q: The Receivables Days ratio may be distorted A/ Factoring of Accounts Receivable B Using year end…
A: The receivables days ratio refers to the ratio which measures the capability of a company to collect…
Q: Maple Management Inc. issued 6 percent bonds with a maturity value of $6,000,000 for $5,513,346 on…
A: Bond interest and bond discount are amortized over the life of the bonds. Under the effective…
Q: Calculate the present value for the cost of RM 10,000 which will be spent for 20 years if the…
A: Present value = FV / (1+r)^n Where r = interest rate per period n = no of periods FV = Future value…
Q: Mocha Company manufactures a single product by a continuous process, involving three production…
A: Journal entries refers to the official book of a firm/company which is used to record the day to day…
Q: Sheridan Company has issued three different bonds during 2022. Interest is payable annually on each…
A: Introduction: The term journal refers to a 'book' or 'diary,' and entry implies writing anything…
Q: Ramona Company reported the following data. Price per unit = $10 ales price → Variable cost per unit…
A: Formula used for computing Net income : = Total Revenues - Total expenses
Q: Compute contribution margin using variable com
A: Contribution margin shows you the aggregate amount of revenue available after variable costs to…
Q: building at
A: Journal entry is an accounting entry to record every transaction takes place in an organization. It…
Q: Ken company which was dealing with high level computer chips issued a 10 year P1,810,000 FV, 6%…
A: Diluted earnings per share used to assess an entity's profitability after taking in to consideration…
Q: C irst thing you writ along with the ab: elect one:
A: The overall purpose of Dissertation introduction is to explain the reader about what has been…
Q: Harper Co. funds the acquisition of equipment on January 1, year 8 by issuing a $15,000…
A: Given Purchase cost = 15000 The present value of an ordinary annuity of $1 at 5% for 10 periods…
Q: How much is the depreciation expense in 20x1 under the retirement method?
A: Depreciation is the expense which decreases the value of the asset on which depreciation has been…
Q: to both the general ledger and the subsidiary ledgers for Sheridan are indicated in the working…
A: The answer has been mentioned below.
Q: A simple variance analysis performed on material costs gives the following results: Price variance…
A: Simple variance analysis is nothing but variance analysis. Variance analysis means calculating the…
Q: elect one: True O False
A: Balance of Payment: its the international transaction of payment which includes receipts and payment…
Q: Part A Consolidation Non-Controlling Interestr Sunshine Ltd acquired 85% of the shares (ex div) of…
A: Acquisition analysis means analyzing the purchase consideration paid by the parent to the subsidiary…
Q: 4. a) Explain why Customs (Amendment) Act 2018 and Free Zones (Amendment)
A: a) According to the data, The scope of the Customs Act of 1962 must be expanded to include anyone…
Q: Adrienne is a single mother with a 6-year-old daughter who lived with her during the entire year.…
A: Claim of child and dependent care credit: If you (and your spouse, if you are filing a joint return)…
Q: Case 1: LAC Corporation is in the process of setting a selling price for a new product it has just…
A: In order to determine the selling price per unit, the markup % on cost are required to be added in…
Q: Required: (a) Discuss four areas of judgement in relation to depreciation within financial…
A: Depreciation is the decrease in the value of asset over a period of time due to usage, wear and tear…
Q: Which of the following statements regarding the allocation of cost from other departments to the…
A: In a large firm with multiple departments, some are operating departments which produce or…
Q: The following data were gathered to use in reconciling the bank account of Conway Company: Balance…
A: The back reconciliation is a statement that outlines the reason for the difference in bank balance…
Q: A corporation has a taxable income of $6,120,000. At this income level, the federal income ta would…
A: Taxable income refers to the sum total of income gained by an entity on which the tax rate is…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Ratios Analyses: McCormick Refer to the information for McCormick above. Additional information for 20X3 it as follows (amounts in millions): Required: Next Level Compute the following for 20X3. Provide a brief description of what each ratio reveals about McCormick 1. return on common equity 2. debt-to-assets 3. debt-toequity 4. current 5. quick (McCormick uses cash and equivalents, short-term securities and receivables in their quick ratio calculation.) 6. inventory turnover days 7. accounts receivable turnover days 8. accounts payable turnover days 9. operating cycle (in days) 10. total asset turnover Use the following information for 14-17 and 14-18: The Hershey Company is one of the worlds leading producers of chocolates, candies, and confections. It sells chocolates and candies, mints and gums, baking ingredients, toppings, and beverages. Hersheys consolidated balance sheets for 20X2 and 20X3 follow.Calculating the Current Ratio and the Quick (or Acid-Test) Ratio Hannah Company has current assets equal to $3,800,000. Of these, $1,200,000 is cash, $1,800,000 is accounts receivable, $500,000 is inventory, and the remainder is marketable securities. Current liabilities total $2,073,000. Required: Note: Round answers to two decimal places. 1. Calculate the current ratio.fill in the blank 1 2. Calculate the quick ratio (acid-test ratio).fill in the blank 2Calculating the Current Ratio and the Quick (or Acid-Test) Ratio Hannah Company has current assets equal to $3,800,000. Of these, $1,200,000 is cash, $1,800,000 is accounts receivable, $500,000 is inventory, and the remainder is marketable securities. Current liabilities total $1,942,000. Required: Note: Round answers to two decimal places. 1. Calculate the current ratio. 2. Calculate the quick ratio (acid-test ratio).
- Calculating the Current Ratio and the Quick for Acid Test) Ratis LoLo Lemon Company has current assets equal to $500,000. Of these, $300,000 is cash, $75,000 is accounts receivable, $125,000 is inventory, and the remainder is marketable securities. Current liabilities total $425,000. Required: Note: Round answers to two decimal places. 1. Calculate the current ratio.The Jamesway Printing Corporation has current assets of $3.2 million. Of this total, $1.2 million is inventory, $0.5 million is cash, $1.0 million is accounts receivable, and the balance is marketable securities. Jamesway has $1.5 million in current liabilities. Round your answers to two decimal places. a. What are the current and the quick ratios for Jamesway? Current ratio: X Quick ratio: b. If Jamesway takes $0.25 million in cash and pays off $0.25 million of current liabilities, what happens to its current and quick ratios? What happens to its real liquidity? New current ratio: X New quick ratio: c. If Jamesway sells $0.6 million of its accounts receivable to a bank and uses the proceeds to pay off short-term debt obligations, what happens to its current and quick ratios? New current ratio: New quick ratio: d. If Jamesway sells $1.2 million in new stock and places the proceeds in marketable securities, what happens to its current and quick ratios? New current ratio: New quick…Calculate the following ratios for 2021 using working Excel formulas. Make sure to label each appropriately using the following cell (number of days, number of times, etc.) Round each answer to 2 decimal places (example: ROE of .1678 should display as 16.78%): Current Ratio Quick Ratio Debt to Equity Ratio Equity Multiplier Times Interest Earned Dividend Yield Inventory Turnover Days’ Sales in Inventory Receivables Turnover Days’ Sales in Receivables Total Asset Turnover Profit Margin Return on Assets Return on Equity P/E Ratio 2.Calculate Return on Equity (ROE) for 2021 using the Dupont
- The financial statements for Royale and Cavalier companies are summarized here: Cavalier Royale Company Company Balance Sheet $ 31,000 61,000 122,000 562,000 146,000 $ 51,000 22,000 37,000 172,000 52,000 Cash Accounts Receivable, Net Inventory Equipment, Net Other Assets $ 922,000 $ 334,000 $ 27,000 67,000 216,000 10,000 14,000 $ 334,000 Total Assets $ 132,000 202,000 486,000 56,000 Current Liabilities Notes Payable (long-term) Common Stock (par $20) Additional Paid-In Capital Retained Earnings 46,000 Total Liabilities and Stockholders' Equity $ 922,000 Income Statement $ 818,000 $ 298,000 156,000 101,000 Sales Revenue Cost of Goods Sold 486,000 246,000 Other Expenses $ 86,000 $ 41,000 Net Income Other Data $ 18.00 $ 15.00 Per share price at end of year Selected Data from Previous Year Accounts Receivable, Net Notes Payable (long-term) Equipment, Net Inventory Total Stockholders' Equity $ 53,000 202,000 562,000 101,000 588,000 $ 20,000 67,000 172,000 44,000 240,000 These two companies…Assume that the current ratio for Arch Company is 3.5, its acid-test ratio is 1.5, and its working capital is $330,000. Answer each of the following questions independently, always referring to the original information. Required: a. How much does the firm have in current liabilities? Note: Do not round intermediate calculations. b. If the only current assets shown on the balance sheet for Arch Company are Cash, Accounts Receivable, and Merchandise Inventory, how much does the firm have in Merchandise Inventory? Note: Do not round intermediate calculations. c. If the firm collects an account receivable of $101,000, what will its new current ratio and working capital be? Note: Round "Current ratio" to 1 decimal place. d. If the firm pays an account payable of $53,000, what will its new current ratio and working capital be? Note: Do not round intermediate calculations. Round "Current ratio" to 1 decimal place. e. If the firm sells inventory that was purchased for $50,000 at a cash price…SDJ Inc., has net working capital of $1165, current liabilities of $6,775 and inventory of $1185 a What is the current ratio? b What is the quick ratio? (do not round intermediate calculations and round your answer to 2 decimal places
- Consider this simplified balance sheet for Geomorph Trading: Current assets Long-term assets $ 245 Current liabilities Long-term debt 630 Other liabilities Equity $ 875 Required: a. What is the company's debt-equity ratio? (Hint: debt = Current liabilities, Long-term debt, and Other liabilities) Note: Round your answer to 2 decimal places. b. What is the ratio of total long-term debt to total long-term capital? Note: Round your answer to 2 decimal places. c. What is its net working capital? d. What is its current ratio? Note: Round your answer to 2 decimal places. $ 170 215 140 350 $ 875 a Debt-equity ratio b. Long-term debt-to-capital ratio c. Net working capital d. Current ratioABC has the following current assets: cash, $102 million; receivables, $94 million; inventory, $182 million; other current assets, $18 million. ABC also has the following liabilities: accounts payable, $98 million; long-term debt, $23 million. Based on these amounts, what is the acid-test ratio ? Numeric Response:?????????Assume that the current ratio for Arch Company is 3.5, its acid-test ratio is 2.0, and its working capital is $360,000. Answer each of the following questions independently, always referring to the original information. Required: How much does the firm have in current liabilities? Note: Do not round intermediate calculations. If the only current assets shown on the balance sheet for Arch Company are Cash, Accounts Receivable, and Merchandise Inventory, how much does the firm have in Merchandise Inventory? Note: Do not round intermediate calculations. If the firm collects an account receivable of $119,000, what will its new current ratio and working capital be?