Question

In: Accounting

Spartan Sportswear's current assets consist of cash, marketable securities, accounts receivable, and inventories. The following data...

Spartan Sportswear's current assets consist of cash, marketable securities, accounts receivable, and inventories. The following data were abstracted from a recent financial statement: Inventories $ 280,000

Total assets $ 825,000

Current ratio 2.90

Acid-test ratio 1.30

Debt to equity ratio 1.20

Required:

Compute the current assets for Spartan (Do not round intermediate calculations.):

Solutions

Expert Solution

Total assets = Current assets + Long-term assets
Current ratio (CA/Current Liabilities (CL)) = 2.90 ; therefore, CA = 2.90 CL
Acide Test ratio (QA/Current Liabilities) = 1.30 ; therefore, QA = 1.30 CL
QA = CA – Inventory
QA = CA – 280,000
1.3 CL = 2.90 CL – $280,000
1.60 CL = $280,000
CL = $175,000
Current Assest for Spartan = $ 507,500     ( 2.90 x 175,000 )

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Bronco Electronics' current assets consist of cash, marketable securities, accounts receivable, and inventories. The following data...
Bronco Electronics' current assets consist of cash, marketable securities, accounts receivable, and inventories. The following data were abstracted from a recent financial statement: Inventories $ 160,000 Total assets $ 1,790,000 Current ratio 4.0 Acid-test ratio 2.40 Debt to equity ratio 1.5 Required: Compute the long-term liabilities for Bronco:
Bronco Electronics' current assets consist of cash, marketable securities, accounts receivable, and inventories. The following data...
Bronco Electronics' current assets consist of cash, marketable securities, accounts receivable, and inventories. The following data were abstracted from a recent financial statement: Inventories $ 170,000 Total assets $ 1,850,000 Current ratio 4.2 Acid-test ratio 3.20 Debt to equity ratio 1.5 Required: Compute the long-term assets for Bronco:
Bronco Electronics' current assets consist of cash, marketable securities, accounts receivable, and inventories. The following data...
Bronco Electronics' current assets consist of cash, marketable securities, accounts receivable, and inventories. The following data were abstracted from a recent financial statement: Inventories $ 205,000 Total assets $ 1,730,000 Current ratio 3.8 Acid-test ratio 2.80 Debt to equity ratio 1.5 Required: Compute the current assets for Bronco:
Bronco Electronics' current assets consist of cash, marketable securities, accounts receivable, and inventories. The following data...
Bronco Electronics' current assets consist of cash, marketable securities, accounts receivable, and inventories. The following data were abstracted from a recent financial statement: Inventories $ 195,000 Total assets $ 1,670,000 Current ratio 3.7 Acid-test ratio 2.70 Debt to equity ratio 1.5 Compute the long-term liabilities for Bronco Long-Term Liabilities:
Spartan Sportswear's current assets consist of cash, short-terminvestments, accounts receivable, and inventory. The following data...
Spartan Sportswear's current assets consist of cash, short-term investments, accounts receivable, and inventory. The following data were abstracted from a recent financial statement:Inventory$270,000Total assets$720,000Current ratio2.85Acid-test ratio1.35Debt to equity ratio1.25Required:Compute the shareholders' equity for Spartan:
Spartan Sportswear's current assets consist of cash, short-term investments, accounts receivable, and inventory. The following data...
Spartan Sportswear's current assets consist of cash, short-term investments, accounts receivable, and inventory. The following data were abstracted from a recent financial statement: Inventory $ 310,000 Total assets $ 810,000 Current ratio 3.80 Acid-test ratio 1.80 Debt to equity ratio 1.70 Required: Compute the shareholders' equity for Spartan:
Assets Current assets Cash $ 21,000 $ 17,000 Marketable securities 21,000 7,000 Accounts receivable (net) 51,000...
Assets Current assets Cash $ 21,000 $ 17,000 Marketable securities 21,000 7,000 Accounts receivable (net) 51,000 43,000 Inventories 136,000 144,000 Prepaid items 25,000 10,000 Total current assets 254,000 221,000 Investments 22,000 15,000 Plant (net) 260,000 245,000 Land 28,000 23,000 Total assets $ 564,000 $ 504,000 Liabilities and Stockholders’ Equity Liabilities Current liabilities Notes payable $ 24,600 $ 8,300 Accounts payable 58,800 45,000 Salaries payable 25,000 19,000 Total current liabilities 108,400 72,300 Noncurrent liabilities Bonds payable 140,000 140,000 Other 25,000 20,000...
Explain the factors underlying a firm’s investment in cash and marketable securities, accounts receivable, and inventory.
Explain the factors underlying a firm’s investment in cash and marketable securities, accounts receivable, and inventory.
Data pertaining to the current position of Forte Company follow: Cash $400,000 Marketable securities 162,500 Accounts...
Data pertaining to the current position of Forte Company follow: Cash $400,000 Marketable securities 162,500 Accounts and notes receivable (net) 325,000 Inventories 750,000 Prepaid expenses 46,000 Accounts payable 230,000 Notes payable (short-term) 260,000 Accrued expenses 295,000 Required: 1. Compute (A) the working capital, (B) the current ratio, and (C) the quick ratio. Round ratios to one decimal place. 2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results...
Data pertaining to the current position of Forte Company follow: Cash $412,500 Marketable securities 187,500 Accounts...
Data pertaining to the current position of Forte Company follow: Cash $412,500 Marketable securities 187,500 Accounts and notes receivable (net) 300,000 Inventories 700,000 Prepaid expenses 50,000 Accounts payable 200,000 Notes payable (short-term) 250,000 Accrued expenses 300,000 1. Compute (A) the working capital, (B) the current ratio, and (C) the quick ratio. Round ratios to one decimal place. 2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results in...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT