A recent balance sheet of Denver Tours is provided below: Other information provided by the company is
Question:
A recent balance sheet of Denver Tours is provided below:
Other information provided by the company is as follows:
Compute and discuss briefly the significance of the following measures as they relate to Denver
Tours:
a. Net income percentage in 2011.
b. Return on equity in 2011.
c. Working capital on December 31, 2011.
d. Current ratio on December 31, 2011.
DENVER TOURS BALANCE SHEET DECEMBER 31, 2011 Assets Cash Accounts receivable Office supplies. Prepaid rent Buses. Accumulated depreciation: buses Total assets . $ 75,100 14,000 1,500 3,400 . .. . $ 240,000 . (18,000) $222,000 S316,000 Liabilities Accounts payable Unearned revenue . Total liabilities $140,200 94,800 S235,000 Stockholders' Equity Capital stock.. Retained earnings Total stockholders' equity.···· $ 80,000 1,000 S 81,000 $316,000 Total revenue for the year ended December 31, 2011 Total expenses for the year ended December 31, 2011 Total stockholders' equity, January 1, 2011 $152,000 ....148,960 79,000
Step by Step Answer:
a Net Income 3040 Total Revenue 152000 2 Significance All companies must consume resources incur cos...View the full answer
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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