Q1:Denna company's working capital accounts at December 31, 19x6, are given below: Cash . $ 50,000 30,000 Marketable securities.. Accounts receivable (net).. Inventory... Prepaid expenses. Accounts payable.. Notes due within one year . Accrued liabilities .. 200,000 210,000 10,000 150,000 30,000 20,000 During 19x7, Denna Company completed the following transactions: x. Paid a cash dividend previously declared, $12,000. a. Issued additional shares of capital stock for cash, $100,000. b. Sold inventory costing $50,000 for $80,000, on account. c. Wrote off uncollectible accounts in the amount of $10,000. d. Declared a cash dividend, $ 15,000. e. Paid accounts payable, $50,000. f. Borrowed cash on a short-term note with the bank, $35,000. 8. Sold inventory costing $15,000 for $10,000 cash. h. Purchased inventory on account, $60,000. i. Paid off all short-term notes due, $30,000. j. Purchased equipment for cash, $15,000. k. Sold marketable securities costing $18,000 for cash, $15,000. I. Collected cash on accounts receivable, $80,000. Required: 1- Compute the following amounts and ratios as of December 31,19x6 a. Working capital b. Current ratio C. Acid-test ratio
Q1:Denna company's working capital accounts at December 31, 19x6, are given below: Cash . $ 50,000 30,000 Marketable securities.. Accounts receivable (net).. Inventory... Prepaid expenses. Accounts payable.. Notes due within one year . Accrued liabilities .. 200,000 210,000 10,000 150,000 30,000 20,000 During 19x7, Denna Company completed the following transactions: x. Paid a cash dividend previously declared, $12,000. a. Issued additional shares of capital stock for cash, $100,000. b. Sold inventory costing $50,000 for $80,000, on account. c. Wrote off uncollectible accounts in the amount of $10,000. d. Declared a cash dividend, $ 15,000. e. Paid accounts payable, $50,000. f. Borrowed cash on a short-term note with the bank, $35,000. 8. Sold inventory costing $15,000 for $10,000 cash. h. Purchased inventory on account, $60,000. i. Paid off all short-term notes due, $30,000. j. Purchased equipment for cash, $15,000. k. Sold marketable securities costing $18,000 for cash, $15,000. I. Collected cash on accounts receivable, $80,000. Required: 1- Compute the following amounts and ratios as of December 31,19x6 a. Working capital b. Current ratio C. Acid-test ratio
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 11MCQ: Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital...
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