Selected financial data for Wilmington Corporation is presented below. WILMINGTON CORPORATIONBalance SheetAs of December 31 Year 7Year 6Current Assets Cash and cash equivalents$ 634,527$ 335,597Marketable securities166,106187,064Accounts receivable (net)284,226318,010Inventories466,942430,249Prepaid expenses60,90628,060Other current assets83,05385,029Total Current Assets1,695,7601,384,009 Property, plant and equipment1,384,217625,421Long-term investment568,003425,000Total Assets$3,647,980$2,434,430 Current Liabilities Short-term borrowings$ 306,376$ 170,419Current portion of long-term debt155,000168,000Accounts payable279,522314,883Accrued liabilities301,024183,681Income taxes payable107,509196,802Total Current Liabilities1,149,4311,033,785 Long-term debt500,000300,000Deferred income taxes236,519288,644Total Liabilities$1,885,950$1,622,429 Common stock$ 425,250$ 125,000Additional paid-in capital356,450344,335Retained earnings980,330342,666Total Stockholders' Equity1,762,030812,001Total Liabilities and Stockholders' Equity$3,647,980$2,434,430 Continued next page Selected financial data for Wilmington Corporation continued: Selected Income Statement Data for the year ending December 31, Year 7:Net sales $4,885,340Cost of goods sold (2,906,526)Selling expenses (884,685)Operating income 1,094,129Interest expense (55,240)Earnings before income taxes 1,038,889Income tax expense (401,225)Net income $ 637,664 Selected Statement of Cash Flow Data for the year ending December 31, Year 7:Cash flows from operations $1,601,692 Wilmington Corporation’s quick ratio in Year 7 was:

Introduction: The financial performance of the companies can be analyzed with the help of ratios as…

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Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.4.9P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

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Selected financial data for Wilmington Corporation is presented below.

WILMINGTON CORPORATION Balance Sheet As of December 31
	Year 7	Year 6
Current Assets
Cash and cash equivalents	$ 634,527	$ 335,597
Marketable securities	166,106	187,064
Accounts receivable (net)	284,226	318,010
Inventories	466,942	430,249
Prepaid expenses	60,906	28,060
Other current assets	83,053	85,029
Total Current Assets	1,695,760	1,384,009

Property, plant and equipment	1,384,217	625,421
Long-term investment	568,003	425,000
Total Assets	$3,647,980	$2,434,430

Current Liabilities
Short-term borrowings	$ 306,376	$ 170,419
Current portion of long-term debt	155,000	168,000
Accounts payable	279,522	314,883
Accrued liabilities	301,024	183,681
Income taxes payable	107,509	196,802
Total Current Liabilities	1,149,431	1,033,785

Long-term debt	500,000	300,000
Deferred income taxes	236,519	288,644
Total Liabilities	$1,885,950	$1,622,429

Common stock	$ 425,250	$ 125,000
Additional paid-in capital	356,450	344,335
Retained earnings	980,330	342,666
Total Stockholders' Equity	1,762,030	812,001
Total Liabilities and Stockholders' Equity	$3,647,980	$2,434,430

Continued next page

Selected financial data for Wilmington Corporation continued:

Selected Income Statement Data for the year ending December 31, Year 7:
Net sales		$4,885,340
Cost of goods sold		(2,906,526)
Selling expenses		(884,685)
Operating income		1,094,129
Interest expense		(55,240)
Earnings before income taxes		1,038,889
Income tax expense		(401,225)
Net income		$ 637,664

Selected Statement of Cash Flow Data for the year ending December 31, Year 7:
Cash flows from operations		$1,601,692

Wilmington Corporation’s quick ratio in Year 7 was:

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