FIN. ACCT.-TOOLS FOR BUS.DEC.MAKING-CODE
9th Edition
ISBN: 9781119595724
Author: Kimmel
Publisher: WILEY C
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Following are the current asset and current liability sections of the balance sheets for Freedom Incorporated at January 31, 2023 and
2022 (in millions):
Current Assets
Cash
Accounts receivable
Inventories
Total current assets
Current Liabilities
Note payable
Accounts payable
Other accrued liabilities
Total current liabilities
January 31, January 31,
2023
2022
Req A
$8
6
7
$ 21
Req B and C
$3
5
4
$12
$5
Required:
a. Calculate the working capital and current ratio at each balance sheet date.
b. Evaluate the firm's liquidity at each balance sheet date.
c. Assume that the firm operated at a loss during the year ended January 31, 2023. How could cash have increased during the year?
9
11
$ 25
Complete this question by entering your answers in the tabs below.
$3
2
4
$9
Following are the current asset and current liability sections of the balance sheets for Freedom Incorporated at January 31, 2023 and
2022 (in millions):
Current Assets
Cash
Accounts receivable
Inventories
Total current assets
Current Liabilities
Note payable
Accounts payable
Other accrued liabilities
Total current liabilities
Req A
January 31,
2023
$12
8
7
$ 27
Req B and C
Working capital
Current ratio
4
3
$ 11
January 31,
2022
Required:
a. Calculate the working capital and current ratio at each balance sheet date.
b. Evaluate the firm's liquidity at each balance sheet date.
c. Assume that the firm operated at a loss during the year ended January 31, 2023. How could cash have increased during the year?
$ 9
11
11
$ 31
Complete this question by entering your answers in the tabs below.
1
3
01/31/2023 01/31/2022
$8
Calculate the working capital and current ratio at each balance sheet date.
Note: Enter "Working capital" in millions of dollars (i.e., 10,000,000 should be entered as 10).…
Common categories of a classified balance sheet include Current Assets, Long-Term Investments, Plant Assets, Intangible Assets,
Current Liabilities, Long-Term Liabilities, and Equity. For each of the following items, identify the balance sheet category where the item
typically would best appear. If an item does not appear on the balance, indicate that instead.
Account Title
1. Notes receivable (due in 2 years)
2. Interest payable (due in 1 week)
3. Long-term investment in stock
4. Wages payable
5. Trademarks
6. Salaries payable
7. Merchandise inventory
8. Prepaid Insurance (expires in 5 months)
9. Rental revenue
10. Unearned revenue
Classification
Account Title
11. Accounts receivable
12. Accounts payable
13. Short-term investments
14. Taxes payable (Due in 5 weeks)
15. Supplies
16. Goodwill
17. Office supplies
18. Franchises
19. Store supplies
20. Copyrights
Classification
Knowledge Booster
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