Question: Dungy Training Company has a current ratio of 0 70 to
Dungy Training Company has a current ratio of 0.70 to 1, based on current assets of $3.43 million and current liabilities of $4.90 million. How, if at all, will a $900,000 cash purchase of inventory affect the current ratio? How, if at all, will a $900,000 purchase of inventory on account affect the current ratio?
Relevant QuestionsPeyton’s Palace has net income of $15 million on sales revenue of $130 million. Total assets were $96 million at the beginning of the year and $104 million at the end of the year. Calculate Peyton’s return on assets, ...Refer to the information provided in E12–2.In E12–2, The income statements for Federer Sports Apparel for 2016 and 2015 are presented below.Required: Prepare a horizontal analysis for 2016 using 2015 as the baseyear.The income statement for Stretch-Tape Corporation reports net sales of $540,000 and net income of $65,700. Average total assets for the year are $900,000.Stockholders’ equity at the beginning of the year was $600,000, and ...The comparative balance sheets for Federer Sports Apparel are presented below.Required:1. Prepare a vertical analysis of the balance sheet data for 2016 and 2015. Express each amount as a percentage of total ...The following income statement and balance sheets for Virtual Gaming Systems are provided.Required: Assuming that all sales were on account, calculate the following risk ratios for 2015. 1. Receivables turnover ratio. 2. ...
Post your question