The following balance sheet data for Finn Company are shown below. a. Determine the working capital and
Question:
The following balance sheet data for Finn Company are shown below.
a. Determine the working capital and current ratio for 2012 and 2011.b. Does the change in the current ratio form 2011 to 2012 indicate a favorable or an unfavorabletrend?
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
2012 2011 $288.000 S171,000 Current assets Current liabilities 120,000 90,000
Step by Step Answer:
a 2012 2011 Current assets 288000 171000 Cu...View the full answer
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Related Video
The current ratio is a financial ratio that measures a company\'s ability to pay its short-term obligations with its short-term assets. It is calculated by dividing a company\'s current assets by its current liabilities. The formula for calculating the current ratio is: Current Ratio = Current Assets / Current Liabilities Current assets are assets that can be converted to cash within one year, while current liabilities are debts that are due within one year. A current ratio of 1:1 or greater is generally considered good, as it indicates that a company has enough current assets to cover its current liabilities. A current ratio of less than 1:1 may suggest that a company may have difficulty meeting its short-term obligations. It\'s important to note that the current ratio is just one of many financial ratios that can be used to assess a company\'s financial health. It should be used in conjunction with other financial ratios and qualitative factors to make informed decisions about investing or lending to a company.
Students also viewed these Accounting questions
-
The following balance sheet data for Mayer Company are shown below. a. Determine the working capital and current ratio for 2012 and 2011.b. Does the change in the current ratio form 2011 to 2012...
-
The OToole Company has the following balance sheet data (in millions): Net income for 20X2 was $60 million. Net cash inflow from operating activities was $72 million. Cash dividends paid were $10...
-
The Jawarski Company has the following balance sheet data ($ in millions): Net income for 20X1 was $55 million. Net cash inflow from operating activities was $88 million. Cash dividends paid were $14...
-
Which of these is not a feature of the AES encryption cipher? Question 4 1 4 1 Answer a . . Its fast execution time. b . . Its use of Feistal networks. c . . Its ease of use in common programming...
-
At January 1, 2017, Jaina Company, a public company, reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings..............$12,100,000 Accumulated...
-
For each of the following independent cases (A through E), compute the missing values in the table: Total Prime Cost Conversion Cost Direct Materials Labor Direct ManufacturingManufacturing Case...
-
Explain why rotation (change) of the lead auditor is important.
-
Survey evidence is often introduced in court cases involving trademark violation and employment discrimination. There has been controversy, however, about whether non probability samples are...
-
(a) X Ltd. is studying the possible acquisition of Y Ltd. by way of merger. The following data are available in respect of both the companies. Particulars Market Capitalization (Rs.) Gross Profit...
-
1. Explain the role of cognitive shortcomings in the WorldCom fraud and how social and organizational pressures influenced Betty Vinson's actions. 2. The SEC action against Vinson was deemed...
-
From the following list of steps in the accounting cycle, identify what two steps are missing. a. Transaction are analyzed and recorded in the journal. b. Transaction are posted to the ledger. c. An...
-
Beacon Company maintains and repairs warnings lights, such as those found on radio towers and lighthouses. Beacon Company prepared the end-of-period spreadsheet shown on the next page at October 31,...
-
Evaluate the expression. 2 P 5
-
Kent Corp. is a calendar-year, accrual-basis C corporation. In 2007, Kent made a nonliquidating distribution of property with an adjusted basis of $150,000 and a fair market value of $200,000 to...
-
1. It is easy to show that in fcc lattice four basal atoms: (000),(0, , ), (,0, ), (, ,0) form regular tetrahedron with the center at ( , ). It is called the tetrahedral void. The lattice cell...
-
Tardy Clocks Inc.(TC) has long-term bonds with a face value of $6M, the coupon rate on the bonds is 6% and the yield on the bonds is also 6%. The unleveled cost of equity is 10% and the value of TC's...
-
Sven is a resident and citizen of Sweden. Sven's brother Noah moved to the United States with his wife Harriet, who is a US Citizen. Noah obtained his US Green Card, which affords him permanent...
-
(b) Prepare an incremental analysis concerning the possible discontinuance of Division I. (Round answers to 0 decimal places, e.g. 1525. Enter negative amounts using either a negative sign preceding...
-
Which approach of job design did H.P. follow? (Read opening case).
-
Solve for the equilibria of the following discrete-time dynamical systems Pr pt+1 = Pr+2.0(I-Pr)
-
Comment on the validity of the following statement. A naive ratio of one is completely useless for hedging. Either find the optimal hedge ratio or dont hedge at all.
-
Financial statements as of December 31, 2008, for Johnson & Johnson are as follows. The company used the FIFO inventory cost flow assumption to prepare these statements (dollars in millions). Assume...
-
Ruhe Auto Supplies began operations in 1998. The company's inventory purchases and sales in the first and subsequent years of operations are as follows: The company's federal income tax rate is 30...
-
You are a financial analyst currently reviewing the financial statements of Danner International and Brady Enterprises, two companies of similar size within the same industry. Net incomes of...
-
You are preparing a seminar for your unit staff on effective communication. Your department supervisor has expressed interest in the seminar and wishes to review your material. You have decided you...
-
Walmart In this section you will introduce the concepts of strategic alternatives and contingency plans. Below, you will identify strategic alternatives that may increase efficiency, and contingency...
-
Inventory Turnover. Shawna s Boutique sells upscale clothing in three categories. Outerwear, Athletic wear, and Formal Wear. The annual sales and average inventory are below Annual Sales ( cost of...
Study smarter with the SolutionInn App