Submitted by: Submitted by onlinehelp1
Views: 563
Words: 315
Pages: 2
Category: Business and Industry
Date Submitted: 11/18/2012 05:56 PM
WA2
3.
Current assets current liabilities
Cash $250,000 accounts payable $620,0000
Accounts receivable Notes payable to
(_1,340,000_ less) banks 130,000
Allowance for doubtful accounts accrued wages 400,000
Of $20,000 1,320,000 taxes owed 100,000
Inventory 1 total current
,410,000 liabilities 1,250,000
Total current assets 2,980,000 long-term debt ????
Land stockholders equity
Plant and equipment preferred stock 1,000,000
(($2800,000 less common stock
Accumulated ($1 par, 750,000
Depreciation shares authorized,
_690,000_______) 2,110,000 700,000 outstanding)
Total assets $5,390,000 retained earnings ????
Total stockholders
equity $3,140,000
Total liabilities and
Equity $4,390,000
8.
Cash 100,000
Accounts receivable 357,000
Inventory 458,000
Current liabilities 498,000
Long-term debt 610,000
Equity 598,000
Current ratio: current ratio = current assets/current liabilities
100000 + 357000 + 458000 + 598000 / 498000 = 1.84
Quick ratio: current assets- inventory / current liabilities
100000 + 357000 + 598000/498000 = 2.12 (?)
(Having difficulty identifying what items are included in assets)
9. If a firm has sales of $45,689,000 a year and the average collection period for the industry is 45 days, what should this firm’s account receivable be if the firm is comparable to the industry?
(HELP please!!)
11. A firm with sales of $500,000 has average inventory of $200,000. The industry average for the inventory turnover is four times a year. What would be the reduction in inventory if this firm were to achieve a turnover comparable to the industry average?
200,000 x 4 = $800,000
800,000 – 500,000 = 300,000
300,000 / 4= 75,000
I am assuming that this is the formula to match the comparison for the industry average…
(Professor Curlett, I will attempt to contact you during your working hours to ask for...