Question
In: Accounting
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:
Solutions
Expert Solution
Debt to equity ratio=debt/equity
Hence debt=1.5*equity
Total assets=Total liabilities+Total equity
1,850,000=1.5*equity+equity
equity=1,850,000/(1.5+1)
=$740000
Hence debt=1.5*740000
=$1,110,000
Current ratio=Current assets/Current liabilities
Hence current assets=4.2*Current liabilities
Acid test ratio=(Current assets-inventory)/Current liabilities
3.2=(current assets-170,000)/Current liabilities
3.2*Current liabilities=current assets-170,000
3.2*Current liabilities=4.2*Current liabilities-170,000
Current liabilities=170,000/(4.2-3.2)
=$170000
Hence current assets=(4.2*170000)
=$714000
Total assets=Current assets+Long term assets
Long term assets=1,850,000-714000
=$1,136,000
ekkarill92 answered 2 years agoRelated 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
$ 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, 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.):
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...
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:
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...
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