Baldwin Corp. reported the following current accounts at the end of two recent years: Required 1. Compute
Question:
Baldwin Corp. reported the following current accounts at the end of two recent years:
Required
1. Compute Baldwin's current ratio at the end of each of the two years.
2. How has Baldwin's liquidity changed at the end of 2017 compared to the end of 2016?
3. Comment on the relative composition of Baldwin's current assets at the end of 2017 compared to the end of 2016.
December 31, 2017 $3,000 15,000 12,000 12,000 2,000 6,000 December 31, 2016 Accounts receivable Inventory Accounts payable Wages payable Notes payable 6,000 10,000 8,000 7,000 1,000 4,000
Step by Step Answer:
1 Current Ratio Current Assets Current Liabilities December 31 2016 Curre...View the full answer
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1337491471
10th edition
Authors: Gary A. Porter, Curtis L. Norton
Related Video
The current ratio is a financial ratio that measures a company\'s ability to pay its short-term obligations with its short-term assets. It is calculated by dividing a company\'s current assets by its current liabilities. The formula for calculating the current ratio is: Current Ratio = Current Assets / Current Liabilities Current assets are assets that can be converted to cash within one year, while current liabilities are debts that are due within one year. A current ratio of 1:1 or greater is generally considered good, as it indicates that a company has enough current assets to cover its current liabilities. A current ratio of less than 1:1 may suggest that a company may have difficulty meeting its short-term obligations. It\'s important to note that the current ratio is just one of many financial ratios that can be used to assess a company\'s financial health. It should be used in conjunction with other financial ratios and qualitative factors to make informed decisions about investing or lending to a company.
Students also viewed these Accounting questions
-
Valley Forge Corporation reported the following current accounts at December 31, 2008 (amounts in thousands): During 2009, Valley Forge completed these selected transactions: Sold services on...
-
Baltimore Corporation reported the following current accounts at December 31, 2014 (amounts in thousands): Cash................................................ $1,500...
-
Satterfield Corporation reported the following current accounts at December 31, 2016 (amounts in thousands): Cash .......................................... $1,500...
-
For the charge configuration of Prob. 2.15, find the potential at the center, using infinity as your reference point.
-
On February 7, Snap Repair Service extended an offer of $75,000 for land that had been priced for sale at $85,000. On February 21, Snap Repair Service accepted the sellers counteroffer of $81,000. On...
-
Perform the indicated operations. -12 + 14 - 18
-
Estimate the power that the human heart must impart to the blood to pump it through the two carotid arteries from the heart to the brain. List all assumptions and show all calculations.
-
Craig Thorne works in a public accounting firm and hopes to eventually be a partner. The management of Allnet Company invites Thorne to prepare a bid to audit Allnets financial statements. In...
-
CIVE 421: Reinforced Concrete Design Summer 2 2023 2nd Exam - Open Book Open Notes 1. Shear and moment design problem - continuous beam span As2 Section 2 Section 1 Wu As2 Asl L = 24 ft Only moment...
-
The growth rate of E. coli in synthetic medium can be expressed by Monod kinetics as 0.935S g/l-hr 0.71+S where S is the concentration of a limiting substrate, glucose. You are going to cultivate E....
-
Lakeside Slammers Inc. is a minor league baseball organization that has just completed its first season. You and three other investors organized the corporation; each put up $10,000 in cash for...
-
Landon Corporation was organized on January 2, 2015, with the investment of $100,000 by each of its two stockholders. Net income for its first year of business was $85,200. Net income increased...
-
Suppose the cost of gasoline today is $5.00 per gallon. What is the price index number for gasoline today, with the 1980 price as the reference value?
-
Tatty acid and an unsaturated fatty acid. 15.6 Stearic acid and linoleic acid each have 18 carbon atoms. Why does stearic acid melt at 69 C but linoleic acid melts at -5 C? 15.7 Draw the line-angle...
-
Hewlett Packard and Compaq Exhibit 9 includes some conflicting information about the size of the synergies. So use the numbers and assumptions supplied below in your valuation. For the discount rate...
-
What are genetic mutations, and how do they happen? When a genetic mutation happens how does it effect the body? How does DNA affect genetic mutations ?
-
Sally, a single person, earns a salary of 110,000 and self-employment income of 10,000. How much of an income tax deduction can Sally take for self-employment taxes paid? Sally, a single person,...
-
Gymo Co. is one of the world's leading health and fitness chains, with a wide range of branches in GCC. Gymo plans to launch a new innovative mobile app to address their customers (gyms members). It...
-
We observe the elastic scattering of E = 5 GeV electrons from protons [m p = 938 MeV] at the angle = 8 and we measure their energy. (1) What is its expected value (neglecting the electron mass)? (2)...
-
The manager of a local convenience store is expanding his line of small toy items. To price these new items, the manager is looking at the prices being charged by competing retailers in his area. For...
-
The following items are available from records of Freescia Corporation at the end of the 2010 calendar year: Required Prepare a balance sheet. Accounts payable Accounts receivable Advertising expense...
-
Dave is the president of Avon Consulting Inc. Avon began business on January 1, 2010. The company's controller is out of the country on business. Dave needs a copy of the company's balance sheet for...
-
The following list, in alphabetical order, shows the various items that regularly appear on the financial statements of Maple Park Theatres Corp. The amounts shown for balance sheet items are...
-
Last year, a city had three school districts: North with a population of 5200 children, South with a population of 10600 children, West, with a population of 15100 children. Use Hamilton, Adams,...
-
Prepare the journal entry to record pension expense and the employer ? s contribution to the pension plan in 2 0 2 0 . ( Credit account titles are automatically indented when amount is entered. Do...
-
Concord Department Store uses a perpetual inventory system. Data for product E2-D2 include the following purchases. Date Number of Units Unit Cost May 7 July 28 45 30 $13 15 On June 1, Concord sold...
Study smarter with the SolutionInn App