Calculate the current ratio, the acid-test ratio, the debt-to-equity ratio, and times interest earned for 2011 and
Question:
Calculate the current ratio, the acid-test ratio, the debt-to-equity ratio, and times interest earned for 2011 and 2012. Assume that Great Oaks Furniture was applying for a business loan and you are the loan officer. Do you have any concerns about lending the company money?
The following information for Great Oaks Furniture, a retail furniture and design firm,relates.
Transcribed Image Text:
Great Oaks Furniture Balance Sheets December 31, 2012 December 31 2011 Assets Current assets: 41,200 570,000 5,070,000 83,800 5,765,000 1,097,000 6,862,000 Cash 53,000 443,000 4,841,000 78,000 5,415,000 1,095,000 6,510,000 Accounts receivable Inventory Prepaid expenses Total current assets Building and equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities 604,000 679,000 Accounts payable 624,000 Bank loan payable Other accrued payables Total current liabilities Long-term debt Total liabilities Stockholders'equity: 625,000 1,562,000 3,359,000 1,359,000 1,496,000 3,225,000 Common stock Retained earnings 1,359,000 2.278,000 3,637,000 6,862,000 Total stockholders'equity Total liabilities and stockholders' equity 6,510,000 Year Ended December 31, 2011 $5,253,000 2,627,000 2,626,000 Year Ended December 31 Great Oaks Furniture Statement of Earnings 2012 Net sales Cost of goods sold Gross margin Operating expenses $5,568,000 2,840,000 2,728,000 501,000 835,000 1,336,000 1,392,000 139,000 1,253,000 439,000 814,000 Selling expenses 630,000 788,000 1,418,000 1,208,000 158,000 1,050,000 368,000 682,000 General and administrative expenses Total operating expenses Operating income Interest expense Income before taxes Income taxes Net income
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 61% (13 reviews)
2012 2011 Current ratio 5765000 1496000 385 5415000 1562000 346 Acidtest ratio 4...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Managerial Accounting questions
-
Do you have any concerns about the audit process at ITS? If so, what are they and what changes to their auditing process would you recommend for the future?
-
The debt-to-equity and times interest earned ratios were discussed in this chapter. Which is a better indicator of a companys ability to meet its required interest payment? Explain.
-
At December 31, 2014, the records of Seacrest Enterprises provided the following selected and incomplete data: Required 1. Complete the following: Shares issued ___________ Shares outstanding...
-
a) What are three factors a court considers when establishing a reasonable hourly rate for attorney's fees? b) Why is the amount awarded to Nike, $12,332.82, less than the amount it asked for,...
-
Summer Day Inc. manufactures two models of its hammock, the Superior and the Deluxe. The Superior model requires 15, 0 0 0 direct labour hours and the Deluxe requires 45, 0 0 0 direct labour hours....
-
Describe primary and foreign keys. How do they differ?
-
Inez has a specific set of plans to build a sailboat. The plans are detailed, and any boatbuilder can construct the boat. Inez secures bids, and the low bid is made by the Whale of a Boat Corp. Inez...
-
Securing computer systems from vulnerabilities includes conducting several tasks for assessing all systems involved. A. List ANY FIVE (5) tasks that an IT Department may perform when assessing...
-
Two types of crops can be grown in particular irrigation areas each year. Each unit quantity of crop A can be sold for a price PA and requires WA units of water, LA units of land, FA units of...
-
The following information for Great Oaks Furniture, a retail furniture and design firm, relates. Calculate asset turnover, accounts receivable turnover, days sales in receivables, inventory turnover,...
-
Cash flow from operations was $700,000 for 2011 and $863,000 for 2012. Does this suggest that management of Great Oaks Furniture has manipulated earnings upward in these years? The following...
-
Many college graduates start their careers as salespeople. Discuss compensation considerations for recent college graduates when accepting a job as a salesperson.
-
How does the behavioral finance approach differ from the standard finance theory approach?
-
Why do the delivery options in a Treasury bond futures contract cause the actual futures price to diverge from its theoretical price?
-
a. What does it mean that a return distribution has a fat tail? b. What is the implication if a return distribution is assumed to be normally distributed but is in fact a fat-tailed distribution?
-
a. What are the difficulties in practice of applying the arbitrage pricing theory model? b. Does Roll's criticism also apply to this pricing model? c. "In the CAPM investors should be compensated for...
-
a. Explain why restrictions on short selling of stocks would cause the actual price of a stock index futures contract to diverge from its theoretical price. b. Explain why creating a portfolio of...
-
The body gains water by ________. a. Absorption in the gut b. Metabolism c. Responding to thirst d. All of the above
-
-4 1 9. Let A = Find A-1, (A") and verify that (A")= (A-1)".
-
What are four techniques that could be used to perform audit data analytics?
-
Norton Company, a manufacture of infant furniture and carriages, is in the initial stages of preparing the annual budget for next year. Scott Ford recently joined Nortons accounting staff and is...
-
The president of the retailer Prime Products has just approached the companys bank with a request for a $30,000, 90-day loan. The purpose of the loan is to assist the company in acquiring...
-
The president of the retailer Prime Products has just approached the companys bank with a request for a $30,000, 90-day loan. The purpose of the loan is to assist the company in acquiring...
-
United States Mexico Tank 1 hour 2 hours Taco 1 minute 1.5 minutes a. Who has the absolute advantage in tank production? Taco production? b. Who has the comparative advantage in tank production? Taco...
-
13) A local business owner is considering adding another employee to his staff in an effort to increase the number of hours the store is open per day. a. If the employee will cost the owner $4,000...
-
The standard variable overhead rate for Unbeatable Toys is $5. Budgeted fixed overhead is $20,000. Unbeatable Toys' budgeted production was 2,000 units for the current period and actual production...
Study smarter with the SolutionInn App