What is the Acid-test ratio of Nezuko Inc Nezuko Inc.Statement of Comprehensive IncomeFor the Year Ended December 31, 2020(Expressed in millions,except per share data)2,700.00(2,025.00)675.00SalesCost of goods soldGross profitsOperating expenses:Selling expensesGeneral and administrative expenses$ (90.00)(67.50)(135.00)Depreciation and amortization expenseTotal operating expenseNet operating income (EBIT or earnings before interest and taxes)Interest expenseEarnings before taxes(292.50)382.50(67.50)315.00(110.25)204.75Income taxesNet IncomeAdditional Information:Dividends paid to stockholders during 2020Number of common shares outstanding45.0090.00Earnings per share (EPS)Dividends per share2.280.50%24 Nezuko Inc.Statement of Financial PositionFor the Year Ended 2020(Expressed in $ millions)AssetsCash90.00Accounts Receivable162.00Inventory378.00Other current assets13.50$ 643.50Tatal current assetsGrass plant and equipmentLess: Accumulated DepreciationNet plant and equipmentTotal Assets1,845.00(517.50)Ŝ 1,327.50$ 1.971.00Liabilities and Owner's Equity$ 189.00Accounts PayableAccrued expenses45.00Shart-term loans54.00$ 288.00771.751.059.75Tatal current liabilitiesLang-term debtTotal LiabilitiesCommon stackholders' equityCommon stack - par valuePaid in capitalRetained earningsTotal common stockholders' equity45.00324.00542.25911.25Total liabilities and stockholders' equityŜ 1971.00

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Business

Accounting

What is the Acid-test ratio of Nezuko Inc

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 24E

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Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)
Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.