Classifying Balance Sheet and Income Statement Accounts and Computing Quick Ratio El Puerto de Liverpool (Liverpool) is
Question:
Classifying Balance Sheet and Income Statement Accounts and Computing Quick Ratio
El Puerto de Liverpool (Liverpool) is a large retailer in Mexico. The following accounts are selected from its annual report for the fiscal year ended December 31, 2013. The amounts below are in thousands of Mexican pesos.
a. Indicate the appropriate classification of each account as appearing in either its balance sheet (B) or its income statement (I).
(Pesos thousands) | Amount | Classification |
Total Revenue | 148,210,888 | I |
Retained Earning | 100,695,564 | B |
Inventory | 22,843,938 | B |
administration expenses | 38,795,562 | I |
total assets | 189,873,808 | B |
long term loans from financial institution | 1,842,912 | B |
financing costs | 2,177,784 | I |
total current assests | 65,724,069 | B |
total stockholder equity | 109,654,664 | B |
prepaid equity | 1,234,774 | B |
total non-credit liabilities | 28,966,202 | B |
b. Determine Liverpool's total liabilities and current liabilities as of December 31 2013.
Total liabilities:
Total current liabilities:
c. Calculate Liverpool's quick ratio as of December 31, 2013. (Assume that Liverpool only has five types of current assets- cash, marketable securities, accounts receivable, inventory and prepaid expenses.) Round your answers to two decimal places.
Financial Accounting
ISBN: 9781618533111
6th Edition
Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman