FOCUS ON PERSONAL FINANCE LL/ACCESS >BI
6th Edition
ISBN: 9781260529326
Author: Kapoor
Publisher: McGraw-Hill Publishing Co.
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Chapter 2, Problem 7P
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To determine: The current ratio and comment on the financial position.
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- Ace Industries has current assets equal to $4 million. The company's current ratio is 2.5, and its quick ratio is 2.2. What is the firm's level of current liabilities? What is the firm's level of inventories? Do not round intermediate calculations. Round your answers to the nearest dollar. Current liabilities: $ Inventories: $arrow_forwardSDJ Inc., has net working capital of $1165, current liabilities of $6,775 and inventory of $1185 a What is the current ratio? b What is the quick ratio? (do not round intermediate calculations and round your answer to 2 decimal placesarrow_forwardQ2. SDJ, Inc., has net working capital of $840, current liabilities of $6,110, and inventory of $284. What is the quick ratio?arrow_forward
- SDJ, Inc., has net working capital of $2,360, current liabilities of $5,430, and inventory of $1,220. a. What is the current ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the quick ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)arrow_forwardY3K, Inc., has sales of $3,300, total assets of $1,520, and a debt-equity ratio of 1.35. If its return on equity is 14 percent, what is its net income? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)arrow_forwardThe Inside Door has total debt of $208,600, total equity of $343,560, and a return on equity of 13.27 percent. What is the return on assets? Can you provide the formula?arrow_forward
- Nakamura, Incorporated, has a total debt ratio of .57, total debt of $317,000, and net income of $38,750. What is the company’s return on equity? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.arrow_forwardThe top part of Rammy's Incorporated's 2022 balance sheet is listed as follows (in millions of dollars). Current assets: Current liabilities: Cash and marketable securities $ 5 Accrued wages and taxes $ 6 Accounts receivable 15 Accounts payable 10 Inventory 95 Notes payable 50 Total $ 115 Total $ 66 What are Mars, Incorporated's current ratio, quick ratio, and cash ratio for 2022? Multiple Choice 1.74242, 0.30303, 0.07576 7.1875, 1.25, 0.3125 1.43939, 0.30303, 0.07576 19.16667, 3.33333, 0.83333arrow_forwardWhat does a current ratio of 2,4 mean?a) The company has 2,4 lira of equity for every lira of current liabilitiesb) The company has 2,4 liras current assets for every lira of current liabilitiesc) The company has 2,4 lira of noncurrent assets for every lira of current liabilitiesd) The company 2,4 lira of total assets for every lira of current liabilitiesarrow_forward
- SDJ, Incorporated, has net working capital of $3,490, current liabilities of $4,950, and inventory of $4,990. a. What is the current ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the quick ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)arrow_forwardThe President of Paroy, has asked you to gather some statistics about his Company’s solvency. You have compiled the following data: Net Income Income Tax Rate P 900 000 34% Total Liabilities Total Stockholders 2 048 000 Interest Expense 100 000 Equity 4 352 000 REQUIRED: Using these data, calculate: 1.)Times interest earned ratio 2.)Debt ratio 3.)Equity ratioarrow_forwardHayley was evaluating whether she should invest in Company M. Based on the below information, calculate the Quick Ratio. Company M Cash $ 240,000 Short-term investments $ 900,000 Accounts receivable $ 100,000 Total current assets $ 1,600,000 Total current liabilities $ 750,000 Total liabilities $ 500,000 Total stockholders’ equity $ 1,900,000 Total revenue $ 1,000,000 Net income/(loss) $ 400,000 a. .40 b. 2.13 c. 1.65 d. 4.0arrow_forward
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