Financial statement data of HiFlite Electronics Limited include the following items (dollars in thousands): Cash...................................................................................................... $ 22,000
Question:
Financial statement data of HiFlite Electronics Limited include the following items (dollars in thousands):
Cash...................................................................................................... $ 22,000
Short-term investments........................................................................... 39,000
Accounts receivable, net......................................................................... 83,000
Inventories............................................................................................ 141,000
Prepaid expenses...................................................................................... 8,000
Total assets............................................................................................ 677,000
Short-term notes payable......................................................................... 49,000
Accounts payable.................................................................................. 103,000
Accrued liabilities................................................................................... 38,000
Long-term notes payable....................................................................... 160,000
Other long-term liabilities....................................................................... 31,000
Net income.............................................................................................. 91,000
Number of common shares outstanding................................................. 40,000
Requirements
1. Compute HiFlite's current ratio, debt ratio, and earnings per share. Use the following format for your answer:
-1.png){kind=small}
2. Compute the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately.
a. Purchased store supplies of $46,000 on account
b. Borrowed $125,000 on a long-term note payable
c. Issued 5,000 common shares, receiving cash of $120,000
d. Paid short-term notes payable, $32,000
e. Received cash on account, $19,000
Format your answer as follows:
-2.png)
Step by Step Answer:
Req 1 ratios before the transactions Req 2 ratios ...View the full answer
Financial Accounting
ISBN: 978-0133472264
5th Canadian edition
Authors: Charles Horngren, William Thomas, Walter Harrison, Greg Berberich, Catherine Seguin
