Question details

ACC 201 week 5 assignment 1
$ 10.00

 

Chapter 9 problems 9- 23

Shantae Lovett

ACC 201

LaKeitha Givens

January 13, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2012

2011

a.

Current assets – Current liabilities

250,000 – 151,800 = 98,200

217,000 – 121,000 = 96,000

b.

Current assets ÷ Current liabilities

250,000 ÷ 151,800 = 1.65 : 1

217,000 ÷ 121,000 = 1.79 : 1

c.

Quick assets ÷ Current liabilities

90,000 ÷ 151,800 = 0.59 : 1

64,000 ÷ 121,000 = 0.53 : 1

d.

Net sales ÷ Average accounts receivables

230,000 ÷ 50,000 = 4.60 times

210,000 ÷ 46,500 = 4.52 times

e.

365 ÷ Turnover (d.)

  365 ÷ 4.60 = 79 days

  365 ÷ 4.52 =81 days

f.

Cost of goods sold ÷ Avg. inventory

120,000 ÷ 139,000 = 0.86 times

103,000 ÷ 141,500 = 0.73 times

g.

365 ÷ Turnover (f.)

  365 ÷ 0.86 = 424 days

  365 ÷ 0.73 = 500 days

h.

Total liabilities ÷ Total assets

283,800 ÷ 576,000 = 49%

248,000÷516,000 = 48%

i.

Total liabilities ÷ Total stockholders' equity

283,800 ÷ 292,200 = 0.97:1

248,000÷268,000 = 0.93:1

j.

(Income before interest + taxes)

                    Interest

(55,000 + 8,000) ÷ 8,000

   = 7.88 times

(54,800 + 7,200) ÷ 7,200

   = 8.61 times

k.

Plant assets ÷ Long-term debt

270,000 ÷ 132,000 = 2.0:1

255,000 ÷ 127,000 = 2.0 : 1

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