Bundle: Accounting, 27th + Working Papers, Chapters 1-17
27th Edition
ISBN: 9781337759892
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 4, Problem 4.6BPE
Current assets and current liabilities for Brimstone Company follow:
2019 | 2018 | |
Current assets | $1,586,250 | $1,210,000 |
Current liabilities | 705,000 | 550,000 |
a. Determine the working capital and current ratio for 2019 and 2018.
b. Does the change in the current ratio from 2018 to 2019 indicate a favorable or an unfavorable change?
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Assuming that you are analysing the following company’s assets and obligations:
year
2020
2019
current assets
6,857
6,877
current liabiities
4,732
4,374
Calculate its working capital and current ratio. Which would be a better year?
Financial statement data for years ending December 31, 2019 and 2018, for Latchkey
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2018
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$1,734,000
$1,645,000
Total assets:
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480,000
460,000
540,000
480,000
a. Determine the asset turnover for 2019 and 2018.
b.
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Refine Assumptions for PPE ForecastFollowing are the income statement and balance sheet for Medtronic PLC.
Consolidated Statement of Income ($ millions)
For Fiscal Year Ended
April 26, 2019
Net sales
$30,557
Costs and expenses
Cost of products sold
9,155
Research and development expenses
2,330
Selling, general, and administrative expense
10,418
Amortization of intangible assets
1,764
Restructuring charges, net
198
Certain litigation charges, net
166
Other operating expense, net
258
Operating profit (loss)
6,268
Other nonoperating income, net
(373)
Interest expense
1,444
Income (loss) before income taxes
5,197
Income tax provision
547
Net income (loss)
4,650
Net (income) loss attributable to noncontrolling interests
(19)
Net income (loss) attributable to Medtronic
$ 4,631
Consolidated Balance Sheet ($ millions)
April 26, 2019
Current assets
Cash and cash equivalents
$ 4,393
Investments
5,455
Accounts receivable, less…
Chapter 4 Solutions
Bundle: Accounting, 27th + Working Papers, Chapters 1-17
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