A condensed balance sheet for Bradford Corporation prepared at the end of the year appears as...
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A condensed balance sheet for Bradford Corporation prepared at the end of the year appears as follows: Cash Assets Liabilities & Stockholders' Equity Notes payable (due in 6 months) $ 105,000 Accounts receivable 145,000 Accounts payable Inventory 220,000 Long-term liabilities Prepaid expenses 60,000 Plant and equipment (net) 570,000 Capital stock, $6 par Retained earnings Other assets 140,000 Total $ 1,240,000 Total $ 40,000 110,000 360,000 300,000 430,000 $ 1,240,000 Required: During the year, the company earned a gross profit of $1,116,000 on sales of $2,950,000. Accounts receivable, inventory, and plant assets remained almost constant in amount throughout the year, so year-end figures may be used rather than averages. a. Compute the current ratio. Note: Round your answer to 1 decimal place. b. Compute the quick ratio. Note: Round your answer to 1 decimal place. c. Compute the working capital. d. Compute the debt ratio. Note: Round your percentage answer to the nearest whole percent. i.e. 0.1234 as 12%. e. Compute the accounts receivable turnover (all sales were on credit). Note: Round your answer to 1 decimal place. A condensed balance sheet for Bradford Corporation prepared at the end of the year appears as follows: Cash Assets Liabilities & Stockholders' Equity Notes payable (due in 6 months) $ 105,000 Accounts receivable 145,000 Accounts payable Inventory 220,000 Long-term liabilities Prepaid expenses 60,000 Plant and equipment (net) 570,000 Capital stock, $6 par Retained earnings Other assets 140,000 Total $ 1,240,000 Total $ 40,000 110,000 360,000 300,000 430,000 $ 1,240,000 Required: During the year, the company earned a gross profit of $1,116,000 on sales of $2,950,000. Accounts receivable, inventory, and plant assets remained almost constant in amount throughout the year, so year-end figures may be used rather than averages. a. Compute the current ratio. Note: Round your answer to 1 decimal place. b. Compute the quick ratio. Note: Round your answer to 1 decimal place. c. Compute the working capital. d. Compute the debt ratio. Note: Round your percentage answer to the nearest whole percent. i.e. 0.1234 as 12%. e. Compute the accounts receivable turnover (all sales were on credit). Note: Round your answer to 1 decimal place.
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