Calculate the following ratios for Everva Corp for Year 2 (round to two decimals, e.g. 12.34, 34.56%):
Fantastic news! We've Found the answer you've been seeking!
Question:
Calculate the following ratios for Everva Corp for Year 2 (round to two decimals, e.g. 12.34, 34.56%):
(a) Current ratio. (b) Acid-test ratio. (c) Debt ratio. (d) Equity ratio.
Everva Corp. | ||
| Year 2 | Year 1 |
Cash | $22,000 | $20,000 |
Temporary investments | 26,000 | - |
Accounts receivable | 38,000 | 36,000 |
Merchandise inventory | 76,000 | 48,000 |
Prepaid insurance | 8,000 | 6,000 |
Long-term investments | 52,000 | 18,000 |
Equipment (net) | 135,000 | 128,000 |
Land | 25,000 | 21,000 |
Goodwill | 56,000 | 51,000 |
Total Assets | $438,000 | $328,000 |
| | |
Current liabilities | $64,000 | $63,000 |
Long-term liabilities | 36,000 | 31,000 |
Common shares | 162,000 | 149,000 |
Retained earnings | 176,000 | 85,000 |
Total Liabilities and Equity | $438,000 | $328,000 |
Related Book For
Financial Markets and Institutions
ISBN: 978-0077861667
6th edition
Authors: Anthony Saunders , Marcia Cornett
Posted Date: