Homework Help is Here – Start Your Trial Now!
Business
Accounting
Net income of $32,500 was reported and dividends of $12,700 were declared and paid in 2023. New equipment was purchased, and equipment with a carrying value of $4,700 (cost of $11,700 and accumulated depreciation of $7,000) was sold for $8,000. (a) Calculate the current ratio and debt to total assets ratio as at December 31, 2022 and 2023. Calculate the free cash flow for December 31, 2023. (Round answers to 2 decimal places, eg. 52.75. Show amounts that decrease cash flow with either a-sign e.g.-15,000 or In parenthesis e.g. (15,000).) Current ratio Debt to total assets ratio Free cash flow, December 31, 2023 $ 2023 :1 % 2022 :1 %

Net income of $32,500 was reported and dividends of $12,700 were declared and paid in 2023. New equipment was purchased, and equipment with a carrying value of $4,700 (cost of $11,700 and accumulated depreciation of $7,000) was sold for $8,000. (a) Calculate the current ratio and debt to total assets ratio as at December 31, 2022 and 2023. Calculate the free cash flow for December 31, 2023. (Round answers to 2 decimal places, eg. 52.75. Show amounts that decrease cash flow with either a-sign e.g.-15,000 or In parenthesis e.g. (15,000).) Current ratio Debt to total assets ratio Free cash flow, December 31, 2023 $ 2023 :1 % 2022 :1 %

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 20BEA: The income statement, statement of retained earnings, and balance sheet for Somerville Company are...
See similar textbooks
icon
Related questions
Question

Please do not give solution in image format thanku 

Net income of $32,500 was reported and dividends of $12,700 were declared and paid in 2023. New equipment was purchased, and equipment with a carrying value of $4,700 (cost of $11,700 and accumulated depreciation of $7,000) was sold for $8,000. (a) Calculate the current ratio and debt to total assets ratio as at December 31, 2022 and 2023. Calculate the free cash flow for December 31, 2023. (Round answers to 2 decimal places, e.g. 52.75. Show amounts that decrease cash flow with either a-sign eg.-15,000 or in parenthesis e.g. (15,000).) Current ratio Debt to total assets ratio Free cash flow, December 31, 2023 $ 2023 :1 % 2022 :1 %
Transcribed Image Text:Net income of $32,500 was reported and dividends of $12,700 were declared and paid in 2023. New equipment was purchased, and equipment with a carrying value of $4,700 (cost of $11,700 and accumulated depreciation of $7,000) was sold for $8,000. (a) Calculate the current ratio and debt to total assets ratio as at December 31, 2022 and 2023. Calculate the free cash flow for December 31, 2023. (Round answers to 2 decimal places, e.g. 52.75. Show amounts that decrease cash flow with either a-sign eg.-15,000 or in parenthesis e.g. (15,000).) Current ratio Debt to total assets ratio Free cash flow, December 31, 2023 $ 2023 :1 % 2022 :1 %
The comparative statement of financial position of Culver Corporation as at December 31, 2023, follows: CULVER CORPORATION Statement of Financial Position December 31 Assets Cash Accounts receivable Equipment Less: Accumulated depreciation Total Liabilities and Shareholders' Equity Accounts payable Common shares Retained earnings Total December 31 2023 $54,500 89.100 27,800 (11,400) $160,000 $20,000 100,000 40,000 $160,000 2022 $6,500 88,200 22,300 (10,800) $106,200 $10,000 76,000 20,200 $106,200
Transcribed Image Text:The comparative statement of financial position of Culver Corporation as at December 31, 2023, follows: CULVER CORPORATION Statement of Financial Position December 31 Assets Cash Accounts receivable Equipment Less: Accumulated depreciation Total Liabilities and Shareholders' Equity Accounts payable Common shares Retained earnings Total December 31 2023 $54,500 89.100 27,800 (11,400) $160,000 $20,000 100,000 40,000 $160,000 2022 $6,500 88,200 22,300 (10,800) $106,200 $10,000 76,000 20,200 $106,200
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cash Flow Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
SWFT Individual Income Taxes
SWFT Individual Income Taxes
Accounting
ISBN:
9780357391365
Author:
YOUNG
Publisher:
Cengage
SEE MORE TEXTBOOKS