Comparative financial statements for The Cable Company Ltd. are shown below. Additional information: 1. All sales were

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Comparative financial statements for The Cable Company Ltd. are shown below.

Comparative financial statements for The Cable Company Ltd. are shown
Comparative financial statements for The Cable Company Ltd. are shown

Additional information:
1. All sales were on account.
2. The allowance for doubtful accounts was $5,400 in 2014 and $5,100 in 2013.
3. On July 1, 2014, 4,000 shares were reacquired for $10 per share and cancelled.
4. In 2014, $5,000 of dividends were paid to the common shareholders.
5. Cash provided by operating activities was $316,200.
6. Cash used by investing activities was $161,300.
Instructions
Calculate all possible liquidity, solvency, and profitability ratios for 2014.
Taking It Further
Based on the ratios you have calculated for 2014, can you determine whether Th e Cable Company's liquidity, solvency, and profitability are strong or weak? If not, what additional information would you require?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For  book-img-for-question

Accounting Principles Part 3

ISBN: 978-1118306802

6th Canadian edition Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

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