1. Kayco Company reports current assets of $6,882, and current liabilities of $2,935. Calculate the current ratio...
Question:
- 1. Kayco Company reports current assets of $6,882, and current liabilities of $2,935. Calculate the current ratio and the working capital.
Current Ratio =
Working Capital = $
2. Selected financial data from Lead Company is provided below.
Cash | $76,000 |
Accounts Receivable | $222,000 |
Inventory | $280,000 |
Short-Term Investments | $49,000 |
Land and Building | $545,000 |
Current Portion of Long-Term Debt | $34,000 |
Accounts Payable | $112,000 |
a) Calculate the quick ratio from the chart above.
Quick Ratio =
b) True or False? A quick ratio of 2.05 shows that the company is likely to meet its short-term cash obligations.
3. The income statement of Laranda Corporation for the years 2019 and 2020 showed the following information.
2020 | 2019 | |
Sales | $94,000 | $81,000 |
Cost of Goods Sold | $67,000 | $49,000 |
Gross Profit | $27,000 | $32,000 |
a) Calculate the gross profit margins for both years.
2020 | 2019 | |
Gross Profit Margin |
b) In which year does Laranda Corporation have a better gross profit margin?
Year:
4. At the end of 2020, accounts receivable for Kopycat Interiors amounted to $226,000. At the beginning of the year it was $185,000. Net credit sales for the year amounted to $948,000 and net income was calculated to be $164,000.
Determine the days sales outstanding ratio and the accounts receivable turnover ratio.
Days Sales Outstanding =
Accounts Receivable Turnover =
5. At the beginning of 2020, Percolate Corp. had inventory of $343,000. During the year, it purchased $208,000 worth of raw materials and sold $510,000 worth of inventory. Determine the inventory turnover ratio and the days' sales in inventory.
Days' Sales in Inventory =
For the inventory turnover ratio, round your answer to 2 decimal places.
Inventory Turnover =
6. Presented below are select figures from the balance sheet of Einstein Company for 2020 and 2019.
Einstein Company Balance Sheet As at November 30 | ||
2020 | 2019 | |
Total Assets | $280,877 | $206,434 |
Total Liabilities | $118,435 | $64,456 |
Shareholders' Equity | $162,442 | $141,978 |
In 2020, Einstein Company had sales of $433,000 and net income of $57,700. Calculate the ratios for 2020 as indicated below.
Return on Assets (Percent):
Asset Turnover:
Debt-to-Equity (Decimal):
Debt-to-Total-Assets (Percent):
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby