Data pertaining to the current position of Forte Company follow: Cash $437,500 Marketable securities 170,000 Accounts and notes receivable (net) 320,000 Inventories 700,000 Prepaid expenses 42,000 Accounts payable 240,000 Notes payable (short-term) 250,000 Accrued expenses 310,000 Required: 1. Compute (A) the working capital, (B) the current ratio, and (C) the quick ratio. Round ratios to one decimal place. 2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results in the appropriate columns of the table provided. Consider each transaction separately and assume that only that transaction affects the data given. Round ratios to one decimal place. A. Sold marketable securities at no gain or loss, $75,000. B. Paid accounts payable, $135,000. C. Purchased goods on account, $100,000. D. Paid notes payable, $105,000. E. Declared a cash dividend, $125,000. F. Declared a common stock dividend on common stock, $45,000. G. Borrowed cash from bank on a long-term note, $205,000. H. Received cash on account, $130,000. I. Issued additional shares of stock for cash, $635,000. J. Paid cash for prepaid expenses, $15,000. 1.Compute the following. Round ratios to one decimal place. A. Working capital: B. Current ratio: C. Quick ratio: 2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results in the appropriate columns of the table provided. Consider each transaction separately and assume that only that transaction affects the data given. Round ratios to one decimal place. Working Current Quick Transaction Capital Ratio Ratio A. B. C. D. E. F. G. H. I. J.
Data pertaining to the current position of Forte Company follow: Cash $437,500 Marketable securities 170,000 Accounts and notes receivable (net) 320,000 Inventories 700,000 Prepaid expenses 42,000 Accounts payable 240,000 Notes payable (short-term) 250,000 Accrued expenses 310,000 Required: 1. Compute (A) the working capital, (B) the current ratio, and (C) the quick ratio. Round ratios to one decimal place. 2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results in the appropriate columns of the table provided. Consider each transaction separately and assume that only that transaction affects the data given. Round ratios to one decimal place. A. Sold marketable securities at no gain or loss, $75,000. B. Paid accounts payable, $135,000. C. Purchased goods on account, $100,000. D. Paid notes payable, $105,000. E. Declared a cash dividend, $125,000. F. Declared a common stock dividend on common stock, $45,000. G. Borrowed cash from bank on a long-term note, $205,000. H. Received cash on account, $130,000. I. Issued additional shares of stock for cash, $635,000. J. Paid cash for prepaid expenses, $15,000. 1.Compute the following. Round ratios to one decimal place. A. Working capital: B. Current ratio: C. Quick ratio: 2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results in the appropriate columns of the table provided. Consider each transaction separately and assume that only that transaction affects the data given. Round ratios to one decimal place. Working Current Quick Transaction Capital Ratio Ratio A. B. C. D. E. F. G. H. I. J.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 4PB
Related questions
Question
Data pertaining to the current position of Forte Company follow:
Cash | $437,500 |
Marketable securities | 170,000 |
Accounts and notes receivable (net) | 320,000 |
Inventories | 700,000 |
Prepaid expenses | 42,000 |
Accounts payable | 240,000 |
Notes payable (short-term) | 250,000 |
Accrued expenses | 310,000 |
Required:
1. | Compute (A) the |
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2. | Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results in the appropriate columns of the table provided. Consider each transaction separately and assume that only that transaction affects the data given. Round ratios to one decimal place.
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1.Compute the following. Round ratios to one decimal place.
A. | Working capital:
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B. | Current ratio:
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C. | Quick ratio:
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2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results in the appropriate columns of the table provided. Consider each transaction separately and assume that only that transaction affects the data given. Round ratios to one decimal place.
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F. |
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G. |
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H. |
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I. |
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