The following accounting information exists for the Aspen and Willow companies: Required a. Identify the current assets
Question:
The following accounting information exists for the Aspen and Willow companies:
Required
a. Identify the current assets and current liabilities and compute the current ratio for each company.
b. Assuming that all assets and liabilities are listed here, compute the debt-to-assets ratios for each company.
c. Determine which company has the greater financial risk in both the short term and the long term.
Aspen Willow $ 30,000 $ 20,000 Cash Wages payable Merchandise inventory 30,000 25,000 65,000 95,000 35,000 145,000 35,000 95,000 Building 40,000 Accounts receivable Long-term notes payable Land 110,000 60,000 55,000 Accounts payable Sales revenue 55,000 50,000 325,000 265,000 Expenses 295,000 230,000
Step by Step Answer:
a Current Assets Aspen Willow Cash 30000 20000 Merchandise inventory 65000 35000 Accounts receivable ...View the full answer
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds
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