C E 6 H Make sure you fill in all Yellow cells. Yellow cells left blank will receive zero credit. 1 2 3 Problem C: The following data are for Toy Company 4 25 points 5 December 31st 5 Current Prior Year Year 8 Prepaid expenses $ 34,500 $ 45,000 9 Accrued abilities (short term) 210,000 186,000 10 Cash in Bank 1.095,000 975,000 11 Wages payable 37,500 12 Accounts payable 714,000 585,000 13 Merchandise inventory 1,342 500 1.437,000 14 Bonds payable. (Long-term) 615,000 594,000 15 Marketable securities (short term) 217,500 147,000 16 Notes payable (due in six months) 300,000 195.000 17 Accounts receivable 907.500 870,000 18 Allowance for doubtful accounts (72,000) (57.000) 19 Cash flow from operating activities 192,000 180,000 20 21 22 Requirements: 23 1. Compute the amount of working capital at both year-end dates 24 2. Compute the current ratio at both year-end dates. 25 3. Compute the acid-test ratio at both year-end dates. 26 4. Compute the cash flow liquidity ratio at both year-end dates. 27 5. Comment briefly on the company's short-term financial position, 28 29 Problem 30 31 1. Working Capital Current Assets Current Liabilities 32 Current Year Prior Year D H 22 Requirements: 23 1. Compute the amount of working capital at both year-end dates. 24 2. Compute the current ratio at both year end dates. 3. Compute the acid-test ratio at both year-end dates. 4. Compute the cash flow quidity ratio at both year-end dates 275. Comment briefly on the company's short term financial position 28 29 Problem 25 26 30 31 1. Working Capital Current Assets - Current liabilities 33 Current Year Prior Year 33 Current Assets 3,575,000 34 Current Liabilities 220.000 1.003.500 35 36 Working Capital 802000S 2413500 37 38 2. Current Ratio - Current Assets/current Liabilities 39 40 Current Assets 41 Current Liabilities 220.000 1.001.00 42 43 Current Ratio (Make sure you round to 2 decimal places. 44 45 46 3. Acid Test Ratio (Cash + Net N/R+ST Investments)/Current Liabilities 47 48 Cash Net ARST Invest 49 Current Liabilities SO 51 Acid Test Ratio (Make sure you found to 2 decimal places.) 52 53 S4 4.Cash Flow Liquidity Ratio (Cash ST Investments + Cash Flow) Current liabilities 55 56. Cash Stinvest Cash Flow 57 current liabilities 22.000 1,003-500 58 - robim lubio C E 6 H Make sure you fill in all Yellow cells. Yellow cells left blank will receive zero credit. 1 2 3 Problem C: The following data are for Toy Company 4 25 points 5 December 31st 5 Current Prior Year Year 8 Prepaid expenses $ 34,500 $ 45,000 9 Accrued abilities (short term) 210,000 186,000 10 Cash in Bank 1.095,000 975,000 11 Wages payable 37,500 12 Accounts payable 714,000 585,000 13 Merchandise inventory 1,342 500 1.437,000 14 Bonds payable. (Long-term) 615,000 594,000 15 Marketable securities (short term) 217,500 147,000 16 Notes payable (due in six months) 300,000 195.000 17 Accounts receivable 907.500 870,000 18 Allowance for doubtful accounts (72,000) (57.000) 19 Cash flow from operating activities 192,000 180,000 20 21 22 Requirements: 23 1. Compute the amount of working capital at both year-end dates 24 2. Compute the current ratio at both year-end dates. 25 3. Compute the acid-test ratio at both year-end dates. 26 4. Compute the cash flow liquidity ratio at both year-end dates. 27 5. Comment briefly on the company's short-term financial position, 28 29 Problem 30 31 1. Working Capital Current Assets Current Liabilities 32 Current Year Prior Year D H 22 Requirements: 23 1. Compute the amount of working capital at both year-end dates. 24 2. Compute the current ratio at both year end dates. 3. Compute the acid-test ratio at both year-end dates. 4. Compute the cash flow quidity ratio at both year-end dates 275. Comment briefly on the company's short term financial position 28 29 Problem 25 26 30 31 1. Working Capital Current Assets - Current liabilities 33 Current Year Prior Year 33 Current Assets 3,575,000 34 Current Liabilities 220.000 1.003.500 35 36 Working Capital 802000S 2413500 37 38 2. Current Ratio - Current Assets/current Liabilities 39 40 Current Assets 41 Current Liabilities 220.000 1.001.00 42 43 Current Ratio (Make sure you round to 2 decimal places. 44 45 46 3. Acid Test Ratio (Cash + Net N/R+ST Investments)/Current Liabilities 47 48 Cash Net ARST Invest 49 Current Liabilities SO 51 Acid Test Ratio (Make sure you found to 2 decimal places.) 52 53 S4 4.Cash Flow Liquidity Ratio (Cash ST Investments + Cash Flow) Current liabilities 55 56. Cash Stinvest Cash Flow 57 current liabilities 22.000 1,003-500 58 - robim lubio