Cash Accounts receivable Inventory Prepaid expenses Plant e

Cash Accounts receivable Inventory Prepaid expenses Plant & equipment (net) Other assets Total 97,80 Notes payable (due in 6 months) 48,800 89,868 331,880 380,886 439,868 118,800 Accounts payable 289,860Long-term liabilities 60,000 Capital stock, $5 par 579,888 Retained earnings g0,800 $ 1,207,e9 Total $ 1,207,800 During the year, the company earned a gross profit of $1.116,000 on sales of $2.950,000. Accounts receivable, inventory, and plant assets remained almost constant in amount throughout the year, so year end figures may be used rather than averages a. Compute the current ratio. (Round your onswer to 2 decimal place.) b. Compute the quick ratio. (Round your answer to 2 decimal place.) c. Compute the working capital d. Compute the debt ratio. (Round your percentage answers to nearest whole percent i. 01234 as 12%) e. Compute the accounts receivable turnover (all sales were on credit) (Round your onswer to 2 decimal places.) f. Compute the inventory turnover (Round your answer to 2 decimal places.) g. Compute the book value per share of capital stock. (Round your answer to 2 decimal places.) to 1 a Current ratio b Quick ratio c Working capital d Debt ratio to t times Accounts recelvable turnover

Solution

Current ratio = Current Assets/Current Liabilities Calculation of Current Ratio Particulars Amount Amount Current Assets(97000+110000+280000+60000)     5,47,000.00 Cash      97,000.00 Accounts Receivable 1,10,000.00 Inventory 2,80,000.00 Prepaid Expenses      60,000.00 Current Liabilities(48000+89000)     1,37,000.00 Notes Payable      48,000.00 Accounts Payable      89,000.00 Current Ratio(547000/137000)                   3.99 Quick ratio = (Current Assets - Inventory - Prepaid expenses)/Current Liabilities Calculation of Quick Ratio Particulars Amount Amount Quick Assets(547000-280000-60000)          2,07,000.00 Current Assets        5,47,000.00 Less: Inventory       -2,80,000.00 Less: Prepaid Expenses          -60,000.00 Current Liabilities(48000+89000)          1,37,000.00 Notes Payable            48,000.00 Accounts Payable            89,000.00 Quick Ratio(547000/137000)                         1.51 Working Capital = Current Assets - Current Liabilities Calculation of Working Capital Particulars Amount Amount Current Assets 5,47,000.00 Current Liabilities 1,37,000.00 Working Capital (547000-137000)     4,10,000.00 Debt Ratio = Debt / Total Assets Calculation of Debt Ratio Particulars Amount Amount Debt(48000+331000)          3,79,000.00 Notes payable            48,000.00 Long Term Liabilities        3,31,000.00 Total Assets ( From Balance Sheet)        12,07,000.00 Debt Ratio (379000/1207000) 31% Accounts Receivable Turnover = Net Credit Sales / Closing Accounts Receivable Calculation of Accounts Receivable Turnover Particulars Amount Amount Sales        29,50,000.00 Accounts Receivable          1,10,000.00 Accounts Receivables Turnover(2950000/110000)                      26.82 Inventory Turnover = COGS / Closing inventory Calculation of Inventory Turnover Particulars Amount Amount Sales        29,50,000.00 Less: Gross Profit      -11,16,000.00 COGS(2950000-1116000)        18,34,000.00 Closing inventory          2,80,000.00 Inventory Turnover (1834000/280000)                         6.55 Book Value per Share = Equity / No. of . Shares outstanding Calculation of Book value per share Particulars Amount Amount Equity(300000+439000)          7,39,000.00 Capital Stock        3,00,000.00 Retained Earnings        4,39,000.00 Par Value of Share                         5.00 No. of. Shares Outstanding(300000/5)              60,000.00 Book Value per Share (739000/60000)                      12.32