What is the Quick Ratio for the Year 2021 (Round to the nearest 3 decimal places) Statement of Cash FlowsFinancial Statement AnalysisComprehensive ProblemPoco Lo, Co.'s 2020 balance sheet and 2021 common-size income statement follow:Poco Lo, Co.Balance SheetDecember 31, 2020ASSETSCashMarketable SecuritiesAccounts Receivable2$4,0002,0007,2008,00021,20012,00020,0003,00070,500- 12,000InventoriesTotal Current AssetsLandEquipmentAccumulated Depreciation -BuildingAccumulated Depreciation –EquipmentBuildingTotal Noncurrent AssetsTotal Assets87,500$ 108,700LIABILITIES AND STOCKHOLDERS' EQUITYAccounts PayableWages PayableTaxes Payable2$7,0001,0001,5009,50030.00039,50030,00019,20020,00069,200$ 108,700Total Current LiabilitiesBonds PayableTotal LiabilitiesCommon Stock, $10 parAdditional Paid-In CapitalRetained EarningsTotal Stockholders' EquityTotal Liabilities and Stockholders' EquityPoco Lo, Co.Common-Size Income StatementFor the Year Ended December 31, 2021Sales (400 Units)Cost of Goods SoldGross Profit100.00%(28% Fixed)56.25%43.75%Operating ExpensesOperating Income43.35%0.40%(40% Variable)Gain on Sale of Land1.60% Income Before Income Tax2.00%Tax Expense (50%)1.00%Net Income1.00%Additional Information for the Year 2021:Poco Lo, Co. is a merchandiser of single-priced, wooden cabinets and no other products.Based on the horizontal and trend analysis made for accounts balances as of December31, 2020, and 2021, the following overall changes were observed:Account NameChangesIncreased by 12.5%Increased to 125%CashMarketable SecuritiesAccounts ReceivableInventoriesDecreased by 10%Decreased by 6.25%Decreased by 12.5%Increased to 120%Increased by 1/6No ChangeIncreased by 1/6LandEquipmentAccumulated Depreciation – EquipmentBuildingAccumulated Depreciation – BuildingAccounts PayableWages PayableTaxes PayableBonds PayableRetained EarningsIncreased to 110%Increased by 5%Decreased by 2/3No ChangeDecreased by 19.25%Upon inspection of the company's records, 250 common stocks were issued for cash forthe year and the company did not repurchaseany of its common stock within the year.The company did not issue any new bonds nor retired any of the existing bonds during theyear.Aside from the land sold, no other noncurrent assets were disposedof within the year.Pieces of equipment were purchased within the year and no other acquisition was made.Cash Dividends were declared and paid within the year.Gross Profit for the period is equal to $30,625.Based on the foregoing facts, answer the following questions:a. Quick Ratio for the Year 2021 (Round to the nearest 3 decimalplaces)b. Cash Flow Provided By (Used In) Operating Activities (Round to thenearest centavos)c. Issuance Price per Share for the Common Stock Issued for the Year(Round to thenearest centavos)

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Description: What is the Quick Ratio for the Year 2021 (Round to the nearest 3 decimal places) Statement of Cash FlowsFinancial Statement AnalysisComprehensive ProblemPoco Lo, Co.'s 2020 balance sheet and 2021 common-size income statement follow:Poco Lo, Co.Balan

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Statement of Cash Flows Financial Statement Analysis Comprehensive Problem Poco Lo, Co.'s 2020 balance sheet and 2021 common-size income statement follow: Poco Lo, Co. Balance Sheet December 31, 2020 ASSETS Cash Marketable Securities Accounts Receivable 24 4,000 2,000 7,200 8,000 21,200 Inventories Total Current Assets Land Equipment Accumulated Depreciation - Building Accumulated Depreciation - 12,000 20,000 3,000 70,500 - 12,000 87,500 $ 108,700 Equipment Building Total Noncurrent Assets Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY Accounts Payable Wages Payable Taxes Payable 2$ 7,000 1,000 1,500 9,500 30.000 39,500 30,000 19,200 20,000 69,200 $ 108,700 Total Current Liabilities Bonds Payable Total Liabilities Common Stock, $10 par Additional Paid-In Capital Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity Poco Lo, Co. Common-Size Income Statement For the Year Ended December 31, 2021 Sales (400 Units) Cost of Goods Sold Gross Profit 100.00% (28% Fixed) 56.25% 43.75% Operating Expenses Operating Income (40% Variable) 43.35% 0.40% Gain on Sale of Land 1.60%

Statement of Cash Flows Financial Statement Analysis Comprehensive Problem Poco Lo, Co.'s 2020 balance sheet and 2021 common-size income statement follow: Poco Lo, Co. Balance Sheet December 31, 2020 ASSETS Cash Marketable Securities Accounts Receivable 24 4,000 2,000 7,200 8,000 21,200 Inventories Total Current Assets Land Equipment Accumulated Depreciation - Building Accumulated Depreciation - 12,000 20,000 3,000 70,500 - 12,000 87,500 $ 108,700 Equipment Building Total Noncurrent Assets Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY Accounts Payable Wages Payable Taxes Payable 2$ 7,000 1,000 1,500 9,500 30.000 39,500 30,000 19,200 20,000 69,200 $ 108,700 Total Current Liabilities Bonds Payable Total Liabilities Common Stock, $10 par Additional Paid-In Capital Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity Poco Lo, Co. Common-Size Income Statement For the Year Ended December 31, 2021 Sales (400 Units) Cost of Goods Sold Gross Profit 100.00% (28% Fixed) 56.25% 43.75% Operating Expenses Operating Income (40% Variable) 43.35% 0.40% Gain on Sale of Land 1.60%

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 55PSA

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