Evensen Furniture Company has requested that you determine whether the companys ability to pay its current liabilities
Question:
a. Working capital
b. Current ratio
c. Quick (acid-test) ratio
d. Debt ratio
e. Times-interest-earned ratio
Summarize the results of your analysis in a writtenreport.
Transcribed Image Text:
2012 2011 Cash Short-term in Net receivables...121,000 129,000 Inventory... 238,000 267,000 Prepaid expenses Total assets Total current liabilities 237,000 151,000 Long-term debt Income from Interest expense. $ 40,000 50,000 6,000 31,000 5,000 570,000 540,000 15,000 87,000 255,000 operations... 250,000 199,000 40,000 40,000
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a Working capital Current assets Current liabilities 2012 445000 237000 208000 2011 457000 151000 30...View the full answer
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Related Book For
Financial accounting
ISBN: 978-0132751124
9th edition
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
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