Question: 2-12 (a) For J&W Graphics Supply, compute the current ratio. Is this a financially healthy company? Explain. J&W Graphics Supply Balance Sheet Data (thousands) Assets

2-12 (a) For J&W Graphics Supply, compute the current ratio. Is this a financially healthy company? Explain. J&W Graphics Supply Balance Sheet Data (thousands) Assets Cash $1,740 Accounts receivable 2,500 Inventories 900 Bad debt provision -75 Liabilities Accounts payable 1,050 Notes payable 500 Accrued expenses 125 (b) The entries on J&W's complete balance sheet include the following: More J&W Balance Sheet Data (thousands) Long-term liabilities $950 Land 475 Plant and equipment 3,100 Accumulated depreciation 1,060 Stock 680 Capital surplus 45 Retained earnings Value not given Construct J&W's balance sheet. (c) What are J&W's values for total assets, total liabilities, and total earnings
Step by Step Solution
There are 3 Steps involved in it
To solve the problem we will follow these steps a Compute the Current Ratio Current Ratio Formula te... View full answer
Get step-by-step solutions from verified subject matter experts
