The current asset section of the Excalibur Tire Company’s balance sheet consists of cash, marketable securities, accounts receivable, and inventory. The December 31, 2021, balance sheet revealed the following: Inventory $ 840,000 Total assets $ 2,800,000 Current ratio 2.25 Acid-test ratio 1.2 Debt to equity ratio 1.8 Required: Determine the following 2021 balance sheet items: 1.Current assets 2.Shareholders' equity 3.Long-term assets
The current asset section of the Excalibur Tire Company’s balance sheet consists of cash, marketable securities, accounts receivable, and inventory. The December 31, 2021, balance sheet revealed the following: Inventory $ 840,000 Total assets $ 2,800,000 Current ratio 2.25 Acid-test ratio 1.2 Debt to equity ratio 1.8 Required: Determine the following 2021 balance sheet items: 1.Current assets 2.Shareholders' equity 3.Long-term assets
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 54CE
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Question
The current asset section of the Excalibur Tire Company’s
Inventory | $ | 840,000 | |
Total assets | $ | 2,800,000 | |
2.25 | |||
Acid-test ratio | 1.2 | ||
Debt to equity ratio | 1.8 | ||
Required:
Determine the following 2021 balance sheet items:
1.Current assets
2.Shareholders' equity
3.Long-term assets
4.Long-term liabilities
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