Use the Falcon Sporting Goods data in Short Exercise S3-12 to compute Falcon's (a) current ratio and

Question:

Use the Falcon Sporting Goods data in Short Exercise S3-12 to compute Falcon's (a) current ratio and (b) debt ratio after each of the following transactions (all amounts in thousands, as in the Falcon financial statements):

1. Falcon earned revenue of $10,000 on account
2. Falcon paid off accounts payable of $10,000. (Challenge)
Round ratios to 2 decimal places.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...

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Financial Accounting

ISBN: 978-0135012840

7th edition

Authors: Walter T. Harrison, Charles T. Horngren

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Question Posted: Aug 04, 2016 10:17 AM

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Use the Falcon Sporting Goods data in Short Exercise S3-12 to compute Falcon's (a) current ratio and

Question:

Cost of goods sold..$126,000 900 Retained earnings, March 31,20X31 Accounts receivable.... 27,700 Property and equipment Total current liabilities.. All other expenses 1,300 Cash. 174,500 net. 45,000 Inventories 7,200 26,000 33,000 .. 4,800 Long-term liabilities .

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When Falcon earned revenue of 10000 on account it increased accounts receivables by 10000 and henc...View the full answer

Financial Accounting

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