Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Chapter 8, Problem 8.6E
Exercise 8.6
Review exercise-calculate net income At the beginning of the current fiscal year, the
Required:
Calculate net income or loss for the year using the same format as shown in Exercise 8.5.
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Current Position Analysis
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
$446,900
$372,400
Marketable securities
517,400
419,000
Accounts and notes receivable (net)
211,700
139,600
Inventories
1,071,800
807,000
Prepaid expenses
552,200
516,000
Total current assets
$2,800,000
$2,254,000
Current liabilities:
Accounts and notes payable
(short-term)
$324,800
$343,000
Accrued liabilities
235,200
147,000
Total current liabilities
$560,000
$490,000
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
1. Working capital
$fill in the blank 1
$fill in the blank 2
2. Current ratio
fill in the blank 3
fill in the blank…
Current Position Analysis
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
$620,200
$495,600
Marketable securities
718,100
557,600
Accounts and notes receivable (net)
293,700
185,800
Inventories
314,200
179,900
Prepaid expenses
161,800
115,100
Total current assets
$2,108,000
$1,534,000
Current liabilities:
Accounts and notes payable
(short-term)
$394,400
$413,000
Accrued liabilities
285,600
177,000
Total current liabilities
$680,000
$590,000
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
1. Working capital
$fill in the blank 1
$fill in the blank 2
2. Current ratio
fill in the blank 3
fill in the blank 4…
Current Position Analysis
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
$273,600
$201,600
Marketable securities
316,800
226,800
Accounts and notes receivable (net)
129,600
75,600
Inventories
760,300
589,300
Prepaid expenses
391,700
376,700
Total current assets
$1,872,000
$1,470,000
Current liabilities:
Accounts and notes payable
(short-term)
$278,400
$294,000
Accrued liabilities
201,600
126,000
Total current liabilities
$480,000
$420,000
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
1. Working capital
$
$
2. Current ratio
3. Quick ratio
b. The liquidity of Albertini has improved from the preceding year to the current year. The working capital, current ratio, and quick ratio have…
Chapter 8 Solutions
Accounting: What the Numbers Mean
Ch. 8 - Prob. 8.1MECh. 8 - Mini-Exercise 8.2 LO 2 Preferred stock-calculate...Ch. 8 - Prob. 8.3MECh. 8 - Mini-Exercise 8.4 LO 6 Treasury stock transactions...Ch. 8 - Prob. 8.5ECh. 8 - Exercise 8.6 Review exercise-calculate net income...Ch. 8 - Prob. 8.7ECh. 8 - Exercise 8.8 Review exercise-calculate retained...Ch. 8 - Prob. 8.9ECh. 8 - Prob. 8.10E
Ch. 8 - Prob. 8.11ECh. 8 - Prob. 8.12ECh. 8 - Prob. 8.13ECh. 8 - Prob. 8.14ECh. 8 - Exercise 8.15 LO 3 Dividend dates-market price...Ch. 8 - Exercise 8.16 LO 3 Ex-dividend date-market price...Ch. 8 - Prob. 8.17ECh. 8 - Prob. 8.18ECh. 8 - Prob. 8.19ECh. 8 - Prob. 8.20ECh. 8 - Prob. 8.21ECh. 8 - Prob. 8.22ECh. 8 - Prob. 8.23PCh. 8 - Prob. 8.24PCh. 8 - Prob. 8.25PCh. 8 - Prob. 8.26PCh. 8 - Prob. 8.27PCh. 8 - Problem 8.28 LO 1, 2, 4, 6 Transaction...Ch. 8 - Problem 8.29 LO 1, 2, 4, 6 Transaction...Ch. 8 - Problem 8.30 LO 1. 2, 4, 6 Transaction...Ch. 8 - Prob. 8.31PCh. 8 - Prob. 8.32PCh. 8 - Prob. 8.33CCh. 8 - Prob. 8.34CCh. 8 - Prob. 8.35CCh. 8 - Case 8.36 LO 1, 2, 7 Capstone analytical review of...
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