Given the balance sheet in Table P3.2, calculate the following ratios:(a) Current ratio(b) Quick ratio(c) Debt-equity ratioReview table P3.2 image below TABLE P3.2 Balance Sheet, Cyclone Construction Co. (31 December 2012)AssetsLiabilities(f) Current liabilitiesAccounts payable(a) Current assetsCash on hand and on depositNotes receivable, current -$389,927.0416,629.39$306,820.29713,991.6650,559.692,838.60Due subcontractorsAccounts receivable, includingretainage of $265,686.39Deposits and miscellaneous receivablesInventory-construction materialPrepaid expensesAccrued expenses and taxesEquipment contracts, current1,222,346.2615,867.80Provision for income taxes97,816.66Total1,171,826.9026,530.148,490.681,679,791.31(g) Deferred creditsIncome billed on jobs inprogress at 31 December 19X4Costs incurred to 31 DecemberTotal2,728,331.36(b) Notes receivable, non-current12,777.9719X4 on uncompleted jobs(c) PropertyBuildingsConstruction equipment2,718,738.019,593.351,181,420.255,244.50188,289.8037,576.0413,596.18244,706.52Total current liabilitiesEquipment contracts, non-current(h) Total liabilities7,477.721,188,897.97Motor vehiclesOffice furniture and equipmentTotalNet worth(d) Less accumulated depreciationNet property102,722.51141,984.01(i) Common stock, 4,610 sharesRetained earnings461,000.00184,655.32645,655.32(0) Total net worthke) Total assets1,834,553.29(k) Total liabilities and net worth1,834,553.29

Name: Given the balance sheet in Table P3.2, calculate the following ratios:
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Description: Given the balance sheet in Table P3.2, calculate the following ratios:(a) Current ratio(b) Quick ratio(c) Debt-equity ratioReview table P3.2 image below TABLE P3.2 Balance Sheet, Cyclone Construction Co. (31 December 2012)AssetsLiabilities(f) Current

Ratio analysis is a quantitative method for analyzing financial statements such as the balance sheet…

TABLE P3.2 Balance Sheet, Cyclone Construction Co. (31 December 2012) Assets Liabilities (a) Current assets () Current liabilities Accounts payable $306,820.29 Cash on hand and on deposit Notes receivable, current - $389,927.04 16,629.39 Due subcontractors 713,991.66 Accounts receivable, including retainage of $265,686.39 Deposits and miscellaneous receivables Inventory-construction material Prepaid expenses Total Accrued expenses and taxes Equipment contracts, current Provision for income taxes 50,559.69 1,222,346.26 15,867.80 2,838.60 97,816.66 1,171,826.90 26,530.14 Total 8,490.68 1,679,791.31 (g) Deferred credits Income billed on jobs in progress at 31 December 19X4 Costs incurred to 31 December 19X4 on uncompleted jobs 2,728,331.36 (b) Notes receivable, non-current 12,777.97 (c) Property Buildings Construction equipment 2,718,738.01 9,593.35 1,181,420.25 5,244.50 188,289.80 Total current liabilities Equipment contracts, non-current (h) Total liabilities 7,477.72 1,188,897.97 Motor vehicles 37,576.04 Office furniture and equipment 13,596.18 244,706.52 Total Net worth (d) Less accumulated depreciation Net property 102,722.51 141,984.01 (i) Common stock, 4,610 shares Retained earnings 461,000.00 184,655.32 (0) Total net worth 645,655.32 (e) Total assets 1,834,553.29 (k) Total liabilities and net worth 1,834,553.29

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter7: Receivables And Investments

Section: Chapter Questions

Problem 7.1DC: Reading 3M Companys Balance Sheet: Accounts Receivable The following current asset appears on the...

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Given the balance sheet in Table P3.2, calculate the following ratios:
(a) Current ratio
(b) Quick ratio
(c) Debt-equity ratio

Review table P3.2 image below

TABLE P3.2 Balance Sheet, Cyclone Construction Co. (31 December 2012)
Assets
Liabilities
(f) Current liabilities
Accounts payable
(a) Current assets
Cash on hand and on deposit
Notes receivable, current -
$389,927.04
16,629.39
$306,820.29
713,991.66
50,559.69
2,838.60
Due subcontractors
Accounts receivable, including
retainage of $265,686.39
Deposits and miscellaneous receivables
Inventory-construction material
Prepaid expenses
Accrued expenses and taxes
Equipment contracts, current
1,222,346.26
15,867.80
Provision for income taxes
97,816.66
Total
1,171,826.90
26,530.14
8,490.68
1,679,791.31
(g) Deferred credits
Income billed on jobs in
progress at 31 December 19X4
Costs incurred to 31 December
Total
2,728,331.36
(b) Notes receivable, non-current
12,777.97
19X4 on uncompleted jobs
(c) Property
Buildings
Construction equipment
2,718,738.01
9,593.35
1,181,420.25
5,244.50
188,289.80
37,576.04
13,596.18
244,706.52
Total current liabilities
Equipment contracts, non-current
(h) Total liabilities
7,477.72
1,188,897.97
Motor vehicles
Office furniture and equipment
Total
Net worth
(d) Less accumulated depreciation
Net property
102,722.51
141,984.01
(i) Common stock, 4,610 shares
Retained earnings
461,000.00
184,655.32
645,655.32
(0) Total net worth
ke) Total assets
1,834,553.29
(k) Total liabilities and net worth
1,834,553.29

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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