1 Vul ture Sporting Goods Company 2 Balance Sheet Thousands

1 Vul ture Sporting Goods Company 2 Balance Sheet Thousands 5 ASSETS 6 Current: 7 Cash 8 Accounts receivabl28, 200 9 Inventories 10 0ther current asse 11 Total current asse 71, 700 12 Property and equip 13 Other assets 14 Total assets 15 LIABILITIES 16 Total current liab $53, 000 17 Long-term liabilit 12, 500 18 Total liabilities 65, 500 19 STOCKHOLDERS\' EQUITY 20 Common stock 21 Retained earnings 13, 200 22 Total stockholders40, 200 $1,300 37, 000 5, 200 6, 000 28, 000 27, 000 25

Solution

Requirement 1 Compute Vulture Current ratio Current Ratio = Current Assets / Current Liabilities Currnet Assets =$71700 Current Liabiltiies =$53000 Amounts In Thousands Current Assets / Currnet Liabiltiies    = Current Ratio $71,700 / $53,000    =1.35