MANAGERIAL ACCOUNTING FUND. W/CONNECT
5th Edition
ISBN: 9781259688713
Author: Wild
Publisher: MCG
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Chapter 13, Problem 3MCQ
To determine
Concept introduction:
Acid test ratio: Acid test ration is also called Quick ratio. This ratio is calculated by dividing the quick assets (Cash, Cash equivalents, Short term investments and current receivables) by total current liabilities for the year. The formula for Acid test ratio is as follows:
To calculate:
The Acid test Ratio.
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MOSS COMPANY
Selected Balance Sheet Information
December 31, 2019 and 2018
2019
2018
Current assets
$84,650
25,000
60, 000
$26,800
32,000
54,100
Cash
Accounts receivable
ed
Inventory
Current liabilities
Accounts payable
Income taxes payable
25,700
2,200
30,400
2,e5e
MOSS COMPANY
Income Statement
For Year Ended December 31, 2019
ces
Sales
$ 515,000
331,6ее
183,400
Cost of goods sold
Gross profit
Operating expenses
Depreciation expense
Other expenses
Income before taxes
$ 36,000
121,500
157, 500
25,900
7,700
$ 18,200
Income taxes expense
Net income
*...........
....... l
Problem 17-6 (AICPA Adapted)
statement of financial position:
2017
2016
Cash and cash equivalents
Accounts receivable, net of allowance
Inventory
Investment in Hall Company at equity
Land
2,350,000
600,000
1,000,000
2,200,000
2,000,000
5,000,000
( 1,050,000) ( 800,000)
400,000
350,000
700,000
850,000
2,000,000
1,500,000
4,000,000
Property, plant and equipment
Accumulated depreciation
Goodwill
400,000
12,500,000
9,000,000
550,000
Accounts payable
Note payable - long term
Bonds payable
Share capital, P100 par
Share premium
Retained earnings
Treasury shares, at cost
600,000
500,000
1,600,000
5,250,000
2,700,000
1,850,000 1,300,000
2,100,000
4,000,000
1,750,000
( 700,000)
12,500,000
9,000,000
Additional information
1. The net income for the current year was P3,050,000.
2. Cash dividend paid amounted to P2,500,000.
3. The entity sold equipment costing P200,000, with carrying
amount of P50,000, for P70,000 cash.
4. The entity issued 10,000 shares of capital for P150 per share
cash.
5. The…
At December 31
Assets
Cash
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
Total assets
Liabilities and Equity
Accounts payable
Current Year 1 Year Ago
$ 28,952
85,608
105,504
9,512
266,097
$ 33,842
61,019
78,261
9,153
245,029
$ 427,304
$ 495,673
$ 123,423
$ 70,770
Long-term notes payable
Common stock, $10 par value
Retained earnings
92,255
162,500
117,495
Total liabilities and equity
$ 495,673
$ 427,304
99,263
163,500
93,771
For both the current year and one year ago, compute the following ratios:
2 Years Ago
$ 35,979
49,426
52,128
4,038
225,529
$ 367,100
$ 49,426
81,940
162,500
73,234
$ 367,100
Exercise 17-7 (Algo) Analyzing liquidity LO P3
(1-a) Compute the current ratio for each of the three years.
(1-b) Did the current ratio improve or worsen over the three-year period?
(2-a) Compute the acid-test ratio for each of the three years.
(2-b) Did the acid-test ratio improve or worsen over the three-year period?
Complete this question by entering your…
Chapter 13 Solutions
MANAGERIAL ACCOUNTING FUND. W/CONNECT
Ch. 13 - Prob. 1MCQCh. 13 - Prob. 2MCQCh. 13 - Prob. 3MCQCh. 13 - Prob. 4MCQCh. 13 - Prob. 5MCQCh. 13 - Prob. 1DQCh. 13 - Prob. 2DQCh. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQ
Ch. 13 - Prob. 6DQCh. 13 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQCh. 13 - Prob. 10DQCh. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - Where on the income statement does a company...Ch. 13 - Prob. 14DQCh. 13 - Prob. 15DQCh. 13 - Prob. 16DQCh. 13 - Use Samsungs financial statements in Appendix A to...Ch. 13 - Prob. 1QSCh. 13 - Prob. 2QSCh. 13 - Prob. 3QSCh. 13 - Prob. 4QSCh. 13 - Prob. 5QSCh. 13 - Prob. 6QSCh. 13 - Prob. 7QSCh. 13 - Prob. 8QSCh. 13 - Prob. 9QSCh. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Prob. 3ECh. 13 - Prob. 4ECh. 13 - Prob. 5ECh. 13 - Prob. 6ECh. 13 - Prob. 7ECh. 13 - Prob. 8ECh. 13 - Prob. 9ECh. 13 - Prob. 10ECh. 13 - Prob. 11ECh. 13 - Prob. 12ECh. 13 - Prob. 13ECh. 13 - Prob. 14ECh. 13 - Prob. 15ECh. 13 - Prob. 1PSACh. 13 - Prob. 2PSACh. 13 - Prob. 3PSACh. 13 - Selected year-end and financial statement of...Ch. 13 - Prob. 5PSACh. 13 - Prob. 6PSACh. 13 - Prob. 1PSBCh. 13 - Prob. 2PSBCh. 13 - Kato Corporation began the month of June with...Ch. 13 - Prob. 4PSBCh. 13 - Prob. 5PSBCh. 13 - Prob. 6PSBCh. 13 - This serial Problem began in Chapter 1 and...Ch. 13 - Refer to Apples financial statements in appendix A...Ch. 13 - Prob. 2BTNCh. 13 - Prob. 3BTNCh. 13 - Prob. 4BTNCh. 13 - Prob. 5BTNCh. 13 - Prob. 6BTNCh. 13 - Prob. 7BTNCh. 13 - Prob. 8BTNCh. 13 - Prob. 9BTN
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