Working Papers, Chapters 1-17 for Warren/Reeve/Duchac's Accounting, 26th and Financial Accounting, 14th
26th Edition
ISBN: 9781305392373
Author: Carl Warren, Jim Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 17, Problem 17.7EX
a.
To determine
Financial Ratios: Financial ratios are the metrics used to evaluate the capabilities, profitability, and overall performance of a company.
To compute: Current and acid-test ratio for current year and previous year.
Given info: Items of current asset and current liabilities.
b.
To determine
To provide: Conclusion towards company’s ratios
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Quick Ratio
Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years:
Current Year
Previous Year
Current assets:
Cash
$487,000
$763,000
Accounts receivable
431,000
359,000
Inventory
266,000
303,000
Total current assets
$1,184,000
$1,425,000
Current liabilities:
Current portion of long-term debt
$86,000
$77,000
Accounts payable
173,000
153,000
Accrued and other current liabilities
281,000
280,000
Total current liabilities
$540,000
$510,000
a. Determine the quick ratio for December 31 of both years. If required, round your answers to one decimal place.
Quick Ratio
Previous year:
Current year:
b. How did the quick ratio change between the two balance sheet dates?
Working Capital and Short Term Liquidity Ratios
Bell Company has a current ratio of 2.85 on December 31. On that date the company's current assets are as follows:
Cash
Short-term investments
Accounts receivable (net)
Inventory
Prepaid expenses
Current assets
$31,400
52,000
169,000
220,000
11,600
$484,000
Bell Company's current liabilities at the beginning of the year were $135,000 and during the year its operating activities provided a cash flow of $50,000.
a. What are the firm's current liabilities on December 31?
Round answer to the nearest whole number.
0
b. What is the firm's working capital on December 31?
Round answer to the nearest whole number.
0
c. What is the quick ratio on December 31?
Round answer to 2 decimal places.
0
d. What is the Bell's operating-cash-flow-to-current-liabilities ratio?
Round answer to 2 decimal places.
Quick Ratio
Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years:
Current Year
Previous Year
Current assets:
Cash
$ 486,000
$ 500,000
Accounts receivable
210,000
200,000
Inventory
375,000
350,000
Total current assets
$1,071,000
$1,050,000
Current liabilities:
Current portion of long-term debt
$ 145,000
$ 110,000
Accounts payable
175,000
150,000
Accrued and other current liabilities
260,000
240,000
Total current liabilities
$ 580,000
$ 500,000
a. Determine the quick ratio for December 31 of both years. If required, round your answers to one decimal place.
Quick Ratio
Previous year:
fill in the blank 1
Current year:
fill in the blank 2
b. How did the quick ratio change between the two balance sheet dates?
Which statement below describes the change between the two balance sheet dates?
Chapter 17 Solutions
Working Papers, Chapters 1-17 for Warren/Reeve/Duchac's Accounting, 26th and Financial Accounting, 14th
Ch. 17 - Prob. 1DQCh. 17 - Prob. 2DQCh. 17 - Prob. 3DQCh. 17 - How would the current and quick ratios of a...Ch. 17 - a. Why is it advantageous to have a high inventory...Ch. 17 - What do the following data, taken from a...Ch. 17 - a. How does the rate earned on total assets differ...Ch. 17 - Kroger, a grocery store, recently had a...Ch. 17 - Prob. 9DQCh. 17 - Prob. 10DQ
Ch. 17 - Horizontal analysis The comparative temporary...Ch. 17 - Prob. 17.1BPECh. 17 - Vertical analysis Income statement information for...Ch. 17 - Vertical analysis Income statement information for...Ch. 17 - Prob. 17.3APECh. 17 - Prob. 17.3BPECh. 17 - Accounts receivable analysis A company reports the...Ch. 17 - Accounts receivable analysis A company reports the...Ch. 17 - Inventory analysis A company reports the...Ch. 17 - Inventory analysis A company reports the...Ch. 17 - Prob. 17.6APECh. 17 - Prob. 17.6BPECh. 17 - Times interest earned A company reports the...Ch. 17 - Times interest earned A company reports the...Ch. 17 - Asset turnover A company reports the following:...Ch. 17 - Asset turnover A company reports the following:...Ch. 17 - Return on total assets A company reports the...Ch. 17 - Return on total assets A company reports the...Ch. 17 - Common stockholders profitability analysis A...Ch. 17 - Common stockholders profitability analysis A...Ch. 17 - Prob. 17.11APECh. 17 - Prob. 17.11BPECh. 17 - Prob. 17.1EXCh. 17 - Vertical analysis of income statement The...Ch. 17 - Common-sized income statement Revenue and expense...Ch. 17 - Vertical analysis of balance sheet Balance sheet...Ch. 17 - Prob. 17.5EXCh. 17 - Prob. 17.6EXCh. 17 - Prob. 17.7EXCh. 17 - Prob. 17.8EXCh. 17 - Accounts receivable analysis The following data...Ch. 17 - Accounts receivable analysis Xavier Scores Company...Ch. 17 - Inventory analysis The following data were...Ch. 17 - Prob. 17.12EXCh. 17 - Ratio of liabilities to stockholders equity and...Ch. 17 - Ratio of liabilities to stockholders equity and...Ch. 17 - Ratio of liabilities to stockholders equity and...Ch. 17 - Prob. 17.16EXCh. 17 - Profitability ratios The following selected data...Ch. 17 - Profitability ratios Ralph Lauren Corporation...Ch. 17 - Six measures of solvency or profitability The...Ch. 17 - Six measures of solvency or profitability The...Ch. 17 - Prob. 17.21EXCh. 17 - Prob. 17.22EXCh. 17 - Earnings per share, discontinued operations The...Ch. 17 - Prob. 17.24EXCh. 17 - Prob. 17.25EXCh. 17 - Prob. 17.26EXCh. 17 - Horizontal analysis of income statement For 2016,...Ch. 17 - Prob. 17.2APRCh. 17 - Prob. 17.3APRCh. 17 - Nineteen measures of solvency and profitability...Ch. 17 - Prob. 17.5APRCh. 17 - Prob. 17.1BPRCh. 17 - Prob. 17.2BPRCh. 17 - Effect of transactions on current position...Ch. 17 - Nineteen measures of solvency and profitability...Ch. 17 - Solvency and profitability trend analysis Crosby...Ch. 17 - Nike, Inc., Problem Financial Statement Analysis...Ch. 17 - Prob. 17.1CPCh. 17 - Prob. 17.2CPCh. 17 - Vertical analysis The condensed income statements...Ch. 17 - Prob. 17.4CPCh. 17 - Comprehensive profitability and solvency analysis...
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