Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Textbook Question
Chapter 16, Problem 6E
The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years:
- a. Determine for each year (1) the
working capital , (2) thecurrent ratio , and (3) the quick ratio. Round ratios to one decimal place. - b. What conclusions can be drawn from these data as to the company’s ability to meet its currently maturing debts?
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The following data were taken from the balance sheet of Nilo Company at the end of two
recent fiscal years:
Current assets:
Cash
Marketable securities
Accounts and notes receivable (net)
Inventories
Prepaid expenses
Total current assets
Current liabilities:
Accounts and notes payable
(short-term)
Accrued liabilities
Total current liabilities
1. Working capital
2. Current ratio
3. Quick ratio
Current Year
Current
Year
$347,700
402,600
164,700
603,900
311,100
$1,830,000
$353,800
256,200
$610,000
Previous Year
$254,400
286,200
95,400
420,300
268,700
$1,325,000
Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick
ratio. Round ratios to one decimal place.
$371,000
159,000
$530,000
Previous
Year
The condensed financial statements of Ivanhoe Company for the years 2020-2021 are presented below:
(See Images)
Compute the following financial ratios by placing the proper amounts for numerators and denominators. (Round per unit answers to 2 decimal places, e.g. 52.75.)
(a)
Current ratio at 12/31/21
$
$
(b)
Acid test ratio at 12/31/21
$
$
(c)
Accounts receivable turnover in 2021
$
$
(d)
Inventory turnover in 2021
$
$
(e)
Profit margin on sales in 2021
$
$
(f)
Earnings per share in 2021
$
(g)
Return on common stockholders’ equity in 2021
$
$
(h)
Price earnings ratio at 12/31/21
$
$
(i)
Debt to assets at 12/31/21
$
$
(j)
Book value per share at 12/31/21
$
The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
Marketable securities
Accounts and notes receivable (net)
Inventories
Prepaid expenses
Total current assets
Current liabilities:
Accounts and notes payable
(short-term)
Accrued liabilities
Total current liabilities.
$620,500
718,500
294,000
749,800
386,200
$2,769,000
1. Working capital
2. Current ratio
3. Quick ratio
b. The liquidity of Albertini has
in current assets relative to current liabilities.
$411,800
298,200
$710,000
$496,000
558,000
186,000
529,500
338,500
$2,108,000
$434,000
186,000
$620,000
a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
Current Year
Previous Year
from the preceding year to the current year. The working capital, current ratio, and quick ratio have all
Most of these changes are the result of an
Chapter 16 Solutions
Managerial Accounting
Ch. 16 - Prob. 1DQCh. 16 - What is the advantage of using comparative...Ch. 16 - Prob. 3DQCh. 16 - Prob. 4DQCh. 16 - Prob. 5DQCh. 16 - What do the following data, taken from a...Ch. 16 - Prob. 7DQCh. 16 - Prob. 8DQCh. 16 - The dividend yield of Suburban Propane Partners,...Ch. 16 - Prob. 10DQ
Ch. 16 - Prob. 1BECh. 16 - Prob. 2BECh. 16 - The following items are reported on a companys...Ch. 16 - Prob. 4BECh. 16 - Prob. 5BECh. 16 - Prob. 6BECh. 16 - Prob. 7BECh. 16 - Prob. 8BECh. 16 - Prob. 9BECh. 16 - Prob. 10BECh. 16 - Prob. 11BECh. 16 - Prob. 1ECh. 16 - The following comparative income statement (in...Ch. 16 - Prob. 3ECh. 16 - Prob. 4ECh. 16 - Prob. 5ECh. 16 - The following data were taken from the balance...Ch. 16 - PepsiCo, Inc. (PEP), the parent company of...Ch. 16 - Current position analysis The bond indenture for...Ch. 16 - Prob. 9ECh. 16 - Accounts receivable analysis Xavier Stores Company...Ch. 16 - Prob. 11ECh. 16 - Prob. 12ECh. 16 - Ratio of liabilities to stockholders equity and...Ch. 16 - Hasbro, Inc. (HAS), and Mattel, Inc. (MAT), are...Ch. 16 - Recent balance sheet information for two companies...Ch. 16 - Prob. 16ECh. 16 - Prob. 17ECh. 16 - Prob. 18ECh. 16 - Prob. 19ECh. 16 - Prob. 20ECh. 16 - Prob. 21ECh. 16 - Prob. 22ECh. 16 - Prob. 23ECh. 16 - Prob. 24ECh. 16 - Prob. 25ECh. 16 - Comprehensive income Anson Industries, Inc.,...Ch. 16 - Prob. 1PACh. 16 - Prob. 2PACh. 16 - Prob. 3PACh. 16 - Measures of liquidity, solvency, and profitability...Ch. 16 - Prob. 5PACh. 16 - Prob. 1PBCh. 16 - Prob. 2PBCh. 16 - Prob. 3PBCh. 16 - Prob. 4PBCh. 16 - Prob. 5PBCh. 16 - Prob. 1MADCh. 16 - Prob. 2MADCh. 16 - Deere Company (DE) manufactures and distributes...Ch. 16 - Marriott International, Inc. (MAR), and Hyatt...Ch. 16 - Prob. 1TIFCh. 16 - Real-world annual report The financial statements...Ch. 16 - Prob. 3TIF
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