Use the information in the adjusted trial balance reported in Exercise to compute the current ratio as
Question:
Use the information in the adjusted trial balance reported in Exercise to compute the current ratio as of the balance sheet date (round the ratio to one decimal). Interpret the current ratio for this company (assume that the industry average for the current ratio is 1.5).
In Exericse
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...
Transcribed Image Text:
Account Title Debit Credit Accounts receivable .. Office supplies. Trucks $ 5,800 17,500 3,000 56,000 $ 32,136 Land Accounts payable.. Interest payable Long-term notes payable Common stock Retained earnings... . Dividends Trucking fees earned Depreciation expense Trucks Salaries expense... Office supplies expense Repairs expense-Trucks Totals 85,000 9,800 4,000 53,000 86,90 75,000 20,000 121,000 20,727 56,749 6,655 10,406 $381,837 $381,837
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 69% (13 reviews)
Interpretation The Companys current ratio of 19 exceeds the industry average of 15 This rat...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting questions
-
Use the information in the adjusted trial balance reported in Exercise 4-4 to compute the current ratio as of the balance sheet date (round the ratio to two decimals). Interpret the current ratio for...
-
Use the information in the adjusted trial balance reported in Exercise 4-11 to prepare Wilson Trucking Company's classified balance sheet as of December 31, 2017. In Exercise 4-11 Account Title...
-
Use the information in the adjusted trial balance reported in Exercise 4-4 to compute the current ratio as of the balance sheet date (round the ratio to two decimals). Interpret the current ratio for...
-
Investor's Report Objectives: You will conduct financial statement analysis of two comparable companies and provide recommendations about the financial position about each for two investors. Select...
-
x - 3y = 3 y = -2 Use the graphical method to solve each of the above pairs of equations.
-
1. Characteristics of a quantitative study include all of the following except: a.clarifies underlying assumptions. b.asks who, what, why, where, when, or how. c.describes the relationship between...
-
An international corporation needed several millions of words, from thousands of documents and manuals, translated. The work was contracted to a company that used computer-assisted translation, along...
-
The partners of O'Reilly and Shriberg, attorneys-at-law, decide to implement an activity based costing system for their firm. They identify the following three cost pools and budgeted amounts for...
-
Johnson refused to file a federal income tax return, claiming that it was a violation of his right to privacy. He was arrested and charged with a violation of the Internal Revenue Code of the United...
-
The Harvey City Comprehensive Case consists of the last problem in each chapter from Chapters 4 through 15. Completing this case essentially requires that you account for all the transactions of a...
-
Use the information in the adjusted trial balance reported in Exercise to prepare Resource Trucking Companys classified balance sheet as of December 31, 2011. In Exercise Account Title Debit Credit...
-
Use the following information to compute profit margin for each separate company a through e. Which of the five companies is the most profitable according to the profit margin ratio? Interpret that...
-
What is value-based management, and how is it related to the corporate valuation model? Is value-based management a good way to run a business, or can you think of alternative systems that are likely...
-
The R in the top equitation is Slide #8 is the percentage of the face value expected to be recovered in case of a bankruptcy, e.g., 35%. Absolute valuation (DCF) of corporate bonds After some...
-
Consider the following polynomial function. Step 1 of 4: Factor the polynomial completely. f(x) = x + 6x-x - 36x - 30
-
Roses Company uses a cash receipts journal. The company charges sales tax, makes bank credit card sales, and offers no cash discounts. On May 30, the company recorded bank credit card sales for the...
-
MIV Home - Looking Glass zy Section 8.7 - CS 172: Computer Science I zyBooks My library > CS 172: Computer Science I home > 8.7: LAB: File name change 8.7 LAB: File name change Instructor note:...
-
Using the weighted-average method of process costing, complete each of the following steps: a. Reconcile the number of physical units worked on during the period. b. Calculate the number of...
-
Let X 2 , X 3 , X 4 , be a sequence of random variables such that Show that X n converges in distribution to Uniform(0, 1). Fxn(x) = = enx + xen n+. enz + (+ ) en n enx ten - (+) en enx + 0x 1 x > 1
-
Planning: Creating an Audience Profile; Collaboration: Team Projects. Compare the Facebook pages of three companies in the same industry. Analyze the content on all available tabs. What can you...
-
Who are the people working at VC firms?
-
The left column lists several cost classifications. The right column presents short definitions of those costs. In the blank space beside each of the numbers in the right column, write the letter of...
-
The left column lists several cost classifications. The right column presents short definitions of those costs. In the blank space beside each of the numbers in the right column, write the letter of...
-
Provide the names of two (a) asset accounts, (b) liability accounts, and (c) equity accounts.
-
ABC Inc. curently has a share price of $44. If they are paying a dividend of $1.13, with a cum dividend date of November 1, would would you expect their share price to be on November 2nd? Please give...
-
Does China benefit from a weak currency?Does Us benefit from a strong currency? Why? Please explain
-
You purchased 10 ASD June 45 puts and the company declares a 10% stock dividend. How are the terms of the option contract then changed?
Study smarter with the SolutionInn App