INTERMEDIATE ACCOUNTING (ACCT 3200A)
10th Edition
ISBN: 9781307660630
Author: SPICELAND
Publisher: MCG CUSTOM
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Chapter 3, Problem 3.11BE
Calculating ratios; solving for unknowns
• LO3–8
The current asset section of Stibbe Pharmaceutical Company’s balance sheet included cash of $20,000 and
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Q.6
Analysis of Financial Statement:
Cash $77.500; Receivable $336.000; Inventory $241,500: Fixed Asset $292.500
Account Payable $129,000; Note Payable $84,000: Other current liabilities $117.000;
Long term Debt $256,500; Common equity $361,000
Compute
i. Working capital
ii. Current ratio
iii.
Quick ratio
iv.
Receivable turnover, where credit sales were Rs.1600,000
v.
Inventory turnover where cost of goods sold Rs 1300,000
END OF EXAM PAPER
FUUAS
What are the spontaneous liabilities on this balance sheet?
Cash
$ 174.90
$ 201.14
Accounts receivable
$ 741.80
$ 853.07
Inventory
$ 1,366.40
$ 1,571.36
Other current assets
$ 174.10
$ 200.22
Total current assets
$ 2,457.20
$ 2,825.78
Net plant and equipment
$ 1,266.40
$ 1,456.36
Other long-term assets
$ 76.30
$ 87.75
Total assets
$ 3,799.90
$ 4,369.89
Accounts payable
$ 192.80
$ 221.72
Accrued expenses
$ 348.90
$ 401.24
Short-term debt
$…
Company A
Company B
Current Asset
Cash
10,000
200,000
Account receivables
90,000
150,000
Inventory
300,000
50,000
Total
400,000
400,000
Current liabilities
150,000
Accounts payable
Notes payable
50,000
50,000
250,000
Total
200,000
300,000
The quick ratio is 2 and 1.33 for company A and B, respectively.
1. Do you think that company A has a better financial condition than company B? Explain
your answer in details.
Chapter 3 Solutions
INTERMEDIATE ACCOUNTING (ACCT 3200A)
Ch. 3 - Prob. 3.1QCh. 3 - Prob. 3.2QCh. 3 - Define current assets and list the typical asset...Ch. 3 - Prob. 3.4QCh. 3 - Prob. 3.5QCh. 3 - Prob. 3.6QCh. 3 - Describe the common characteristics of assets...Ch. 3 - Prob. 3.8QCh. 3 - Prob. 3.9QCh. 3 - Define the terms paid-in-capital and retained...
Ch. 3 - Disclosure notes are an integral part of the...Ch. 3 - A summary of the companys significant accounting...Ch. 3 - Define a subsequent event.Ch. 3 - Prob. 3.14QCh. 3 - Prob. 3.15QCh. 3 - Prob. 3.16QCh. 3 - Prob. 3.17QCh. 3 - Show the calculation of the following solvency...Ch. 3 - Prob. 3.19QCh. 3 - Prob. 3.20QCh. 3 - (Based on Appendix 3) Segment reporting...Ch. 3 - Prob. 3.22QCh. 3 - Prob. 3.23QCh. 3 - Current versus long-term classification LO32,...Ch. 3 - Prob. 3.3BECh. 3 - Balance sheet preparation; missing elements LO32,...Ch. 3 - Financial statement disclosures LO34 For each of...Ch. 3 - Calculating ratios; solving for unknowns LO38 The...Ch. 3 - Balance sheet classification LO32, LO33 The...Ch. 3 - Prob. 3.3ECh. 3 - Prob. 3.9ECh. 3 - Financial statement disclosures LO34 The...Ch. 3 - Prob. 3.13ECh. 3 - FASB codification research LO32, LO34 Access the...Ch. 3 - Prob. 3.15ECh. 3 - Prob. 3.17ECh. 3 - Prob. 3.20ECh. 3 - Prob. 3.22ECh. 3 - Prob. 3.1PCh. 3 - Prob. 3.2PCh. 3 - Communication Case 31 Current versus long-term...Ch. 3 - Analysis Case 32 Current versus long- term...Ch. 3 - Prob. 3.4DMPCh. 3 - Prob. 3.9DMPCh. 3 - Prob. 3.11DMPCh. 3 - Prob. 3.15DMPCh. 3 - Ethics Case 316 Segment reporting Appendix 3 You...Ch. 3 - Prob. 3.17DMPCh. 3 - Prob. 2CCTC
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