FUNDAMENTALS OF ADVANCED ACCOUNTING >I
6th Edition
ISBN: 9781307007350
Author: Hoyle
Publisher: MCG/CREATE
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Chapter 4, Problem 17P
To determine
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The following data were taken from the comparative balance sheet of Osborn Sisters Company for the years ended December 31, 20Y9 and December 31, 20Y8:
Dec. 31, 20Y9
Dec. 31, 20Y8
Cash
$295,200
$218,900
Temporary investments
315,000
239,800
Accounts and notes receivable (net)
289,800
261,300
Inventories
405,000
324,000
Prepaid expenses
345,000
126,000
Total current assets
$1,650,000
$1,170,000
Accounts payable
$290,000
$315,000
Accrued liabilities
210,000
135,000
Total current liabilities
$500,000
$450,000
The balance sheet for Munoz Corporation follows: Current assets Long-term assets (net) Total assets Current liabilities Long-term liabilities Total liabilities Common stock and retained earnings Total liabilities and stockholders' equity $ 235,000 762,000 $997,000 $160,000 457,000 617,000 380,000 $997,000 Required Compute the following. (Round "Ratios" to 1 decimal place.) ace Working capital Current ratio Debt to assets ratio
The following data were taken from the comparative balance sheet of Osborn Sisters Company for the years ended December 31, 20Y9 and December 31, 20Y8:
Dec. 31, 20Y9
Dec. 31, 20Y8
Cash
$360,800
$273,600
Temporary investments
385,000
299,700
Accounts and notes receivable (net)
354,200
326,700
Inventories
495,000
405,000
Prepaid expenses
355,000
135,000
Total current assets
$1,950,000
$1,440,000
Accounts payable
$290,000
$315,000
Accrued liabilities
210,000
135,000
Total current liabilities
$500,000
$450,000
a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
20Y9
20Y8
Working capital
$fill in the blank 1
$fill in the blank 2
Current ratio
fill in the blank 3
fill in the blank 4
Quick ratio
fill in the blank 5
fill in the blank 6
Chapter 4 Solutions
FUNDAMENTALS OF ADVANCED ACCOUNTING >I
Ch. 4 - Prob. 1QCh. 4 - Atwater Company acquires 80 percent of the...Ch. 4 - What is a control premium and how does it affect...Ch. 4 - Prob. 4QCh. 4 - How is the noncontrolling interest in a subsidiary...Ch. 4 - Prob. 6QCh. 4 - Prob. 7QCh. 4 - Prob. 8QCh. 4 - Prob. 9QCh. 4 - Prob. 10Q
Ch. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Prob. 8PCh. 4 - Prob. 9PCh. 4 - Prob. 10PCh. 4 - Prob. 11PCh. 4 - Prob. 12PCh. 4 - Prob. 13PCh. 4 - Prob. 14PCh. 4 - Prob. 15PCh. 4 - Prob. 16PCh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Current liabilities: a. 50,000 b. 46,000 c. 40,000...Ch. 4 - Prob. 20PCh. 4 - Stockholders equity: a. 80,000 b. 90,000 c. 95,000...Ch. 4 - Prob. 22PCh. 4 - Prob. 23PCh. 4 - Prob. 24PCh. 4 - Prob. 25PCh. 4 - Prob. 26PCh. 4 - Prob. 27PCh. 4 - Prob. 28PCh. 4 - Prob. 29PCh. 4 - Prob. 30PCh. 4 - Prob. 31PCh. 4 - Prob. 32PCh. 4 - Prob. 33PCh. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - Prob. 36PCh. 4 - Prob. 37PCh. 4 - Prob. 38PCh. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Prob. 42PCh. 4 - Prob. 1DYS
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- The following data were taken from the comparative balance sheet of Osborn Sisters Company for the years ended December 31, 20Y9 and December 31, 20Y8: Dec. 31, 20Y9 Dec. 31, 20Y8Cash $399,800 $300,000 Temporary investments 426,700 328,700 Accounts and notes receivable (net) 392,500 358,300 Inventories 548,600 444,200 Prepaid expenses 299,400 166,800 Total current assets $2,067,000 $1,598,000 Accounts payable $307,400 $329,000 Accrued liabilities 222,600 141,000 Total current liabilities $530,000 $470,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. 20Y9 20Y8Working capital $$Current ratio Quick ratio b. The liquidity of Osborn Sisters Company has from 20Y8 to the 20Y9. The working capital, current ratio, and quick ratio have all . Most of these changes are the result of .arrow_forwardBelnap Company has provided the following partial comparative balance sheets and the income statement for 20X2. Belnap Company Comparative Balance Sheets At December 31, 20X1 and 20X2 20X1 20X2 Current assets: Accounts receivable $140,000 $112,600 Inventories 50,000 24,000 Current liabilities: Accounts payable 120,000 95,000 Belnap Company Income Statement For the Year Ended December 31, 20X2 Revenues $480,000 Gain on sale of equipment 20,000 Cost of goods sold (260,000) Depreciation expense (50,000) Interest expense (10,000) Net income $180,000 Required: Compute operating cash flows using the direct method.arrow_forwardPrezas Company's balance sheet showed total current assets of $3,250, all of which were required in operations. Its current liabilities consisted of 5975 of accounts payable. What was its working capital? options: $1,701 $2,309 $2,275 $1,620arrow_forward
- Sterling had assets and liabilities as follows: Cash $25,000Accounts Receivable $40,000Inventory $62,500Building (net of accum. deprec.) $90,000Goodwill $65,000Accounts Payable $55,500Accrued Expenses $12,500Bond Payable (Due in 15 yrs) $90,000 Calculate working capital, and current and quick ratiosarrow_forwardA company reports the following income statement and balance sheet information for the current year:Net income $ 250,000Interest expense 100,000Average total assets 2,500,000Determine the return on total assets. Round percentage to one decimal place.arrow_forwardThe income statement and comparative Statement of Financial Positions of MacTavish Ltd. are shown below.Income Statement for the year ended December 31, 20x4Sales $ 1,420,000Cost of goods sold (1,110,000)Depreciation expense (55,000)Interest expense (22,000)Operating expenses (178,000)Gain on sale of capital assets 10,000Income tax expense (19,000)Net income $ 46,000Statement of Financial Position as at December 31 20x420x4 20x3Cash $ 71,000 $ 80,000 Accounts receivable 191,000 169,000 Inventory 303,000 324,000 Prepaid expenses 18,000 26,000Capital assets 640,000 612,000 Accumulated depreciation (301,000) (253,000) $922,000 $958,000Accounts payable $ 149,000 $ 243,400 Interest payable 41,000 36,000 Income taxes payable 8,000 12,000 Deferred revenue 25,000 17,000Bonds payable – net 226,000 229,600Common shares 317,000 300,000 Retained earnings 156,000 120,000 $922,000 $958,000 Additional information1. The bonds payable have a face value of…arrow_forward
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