Question
In: Accounting
FERRIS COMPANY HAS CASH OF $70,000, SHORT-TERM INVESTMENTS OF 60,000, NET ACCOUNTS RECEIVABLE OF $86,000, INVENTORY...
FERRIS COMPANY HAS CASH OF $70,000, SHORT-TERM INVESTMENTS OF
60,000, NET ACCOUNTS RECEIVABLE OF $86,000, INVENTORY OF $96,000,
PREPAID EXPENSES OF $60,000, ACCOUNTS PAYABLE OF $50,000, UNEARNED
REVENUE OF $20,000, NOTES PAYABLE OF $10,000, SALARY PAYABLE OF
$6,000, MORTGAGE PAYABLE OF $100,000, BONDS PAYABLE OF $75,000,
INCOME TAXES PAYABLE OF $4,000, GROSS SALES OF $520,000, SALES
RETURNS OF $8,000 AND SALES DISCOUNTS OF $7,000. LAST YEAR’S NET
ACCOUNTS RECEIVABLE WERE $114,000.
COMPUTE THE FOLLOWING RATIOS:
A. QUICK RATIO
B. AVERAGE DAYS’ SALES UNCOLLECTED
Solutions
Expert Solution
Answer a.
Quick Assets = Cash + Short-term Investments + Net Accounts
Receivable
Quick Assets = $70,000 + $60,000 + $86,000
Quick Assets = $216,000
Current Liabilities = Accounts Payable + Unearned Revenue +
Salary Payable + Income Taxes Payable
Current Liabilities = $50,000 + $20,000 + $6,000 + $4,000
Current Liabilities = $80,000
Quick Ratio = Quick Assets / Current Liabilities
Quick Ratio = $216,000 / $80,000
Quick Ratio = 2.70
Answer b.
Net Sales = Gross Sales - Sales Returns - Sales Discounts
Net Sales = $520,000 - $8,000 - $7,000
Net Sales = $505,000
Average Accounts Receivables = ($86,000 + $114,000) / 2
Average Accounts Receivables = $100,000
Days’ Sales Uncollected = Average Accounts Receivables / Net
Sales * 365
Days’ Sales Uncollected = $100,000 / $505,000 * 365
Days’ Sales Uncollected = 72.28 days
ekkarill92 answered 2 years agoRelated Solutions
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:
At the end of 2015, Apple had cash and short-term investments of $41.86 billion, accounts receivable...
At the end of 2015, Apple had cash and short-term investments of
$41.86 billion, accounts receivable of $35.74 billion, current
assets of $89.83 billion, and current liabilities of $80.38
billion. a. What was Apple's current ratio? b. What was Apple's
quick ratio? c. What was Apple's cash ratio? d. At the end of 2015,
HPQ had a cash ratio of 0.29, a quick ratio of 0.66 and a current
ratio of 1.06. What can you say about the asset liquidity...
At the end of 2015, Apple had cash and short-term investments of $41.86 billion, accounts receivable...
At the end of 2015, Apple had cash and short-term investments of
$41.86 billion, accounts receivable of $36.25 billion, current
assets of $88.89 billion, and current liabilities of $80.39
billion. a. What was Apple's current ratio? b. What was Apple's
quick ratio? c. What was Apple's cash ratio? d. At the end of 2015,
HPQ had a cash ratio of 0.36, a quick ratio of 0.75 and a current
ratio of 1.23. What can you say about the asset liquidity...
At the end of 2015, Apple had cash and short-term investments of $41.60 billion, accounts receivable...
At the end of 2015, Apple had cash and short-term investments of
$41.60 billion, accounts receivable of $35.89 billion, current
assets of $89.38 billion, and current liabilities of $80.61
billion
a. What was Apple's current ratio?
b. What was Apple's quick ratio?
c. What was Apple's cash ratio?
d. At the end of 2015, HPQ had a cash ratio of 0.35, a quick
ratio of 0.73 and a current ratio of 1.15. What can you say about
the asset liquidity...
The Casinova Corp. has provided the following account balances: Cash $76,000; Short-term investments $8,000; Accounts receivable...
The Casinova Corp. has
provided the following account balances:
Cash $76,000;
Short-term investments
$8,000;
Accounts receivable
$96,000;
Supplies $12,000;
Long-term notes
receivable $4,000;
Equipment
$192,000;
Factory Building
$360,000;
Intangible assets
$12,000;
Accounts payable
$90,000;
Accrued liabilities
payable $12,000;
Short-term notes
payable $42,000;
Long-term notes
payable $184,000.
What is Casinova's
current ratio?
A company has Cash of $1000, Accounts Receivable of $200, Inventory of $300, Long-Term Assets of...
A company has Cash of $1000, Accounts Receivable of $200,
Inventory of $300, Long-Term Assets of $4000, Accounts Payable of
$500 and a Long-Term Bank Loan of $5000. Calculate the company's
current ratio.
Question 1 options:
1
2
3
4
Question 2
Using the following information, calculate the inventory
turnover for ABC Retailers: Sales are $4800, Cost of Goods Sold is
$2000, operating expenses are $1000, and average inventory is
$500.
Question 2 options:
4
5
6
7
Question 3...
You have $60,000 in cash, $40,000 in accounts receivable, $100,000 in inventory, $65,000 in accounts payable,...
You
have $60,000 in cash, $40,000 in accounts receivable, $100,000 in
inventory, $65,000 in accounts payable, $25,000 in accrued expenses
on 12/31/2017. What was your net working capital balance on this
date?
Balance sheet December 31 Assets 2007 2006 Cash $25,000 $40,000 Short term investments 15,000 60,000 Accounts...
Balance sheet
December 31
Assets 2007 2006
Cash $25,000 $40,000
Short term investments 15,000 60,000
Accounts receivable 50,000 30,000
Inventory 50,000 70,000
Property, plant and equipment (net) 160,000 200,000
Total assets $300,000 $400,000
Liabilities and stockholders equity
Accounts payable $20,000 $30,000
Short term notes payable 40,000 90,000
Bonds payable 80,000 160,000
Common stock 60,000 45,000
Retained earnings 100,000 75,000
Total liabilities and stockholders equity $300,000 $400,000
Income statement (for the year ended December 31, 2007)
Net sales $360,000
Cost of...
2003 2004 2005 2006 Cash and Short Term Investments 51.421 58.054 60.651 72.122 Accounts Receivable 12.394...
2003
2004
2005
2006
Cash and
Short Term Investments
51.421
58.054
60.651
72.122
Accounts
Receivable
12.394
17.256
25.158
30.919
Inventory
4.350
5.398
7.358
8.714
Prepaid
Expenses and Deferred Taxes
3.887
3.905
9.607
15.863
Current
Assets
72.052
84.613
102.774
127.618
Property, Plant and Equipment
146.362
201.725
268.809
345.977
Goodwill
and Other Assets
38.421
38.334
66.084
69.014
Total
Assets
256.835
324.672
437.667
542.609
Accounts
Payable
8.072
5.840
4.422
5.800
Acrued
Expenses and Deferred Revenue
37.571
49.865
82.443
103.810
Current
Liabilities
45.643
55.705...
Powell Company began the 2018 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and...
Powell Company began the 2018 accounting period with $40,000
cash, $86,000 inventory, $60,000 common stock, and $66,000 retained
earnings. During 2018, Powell experienced the following events:
1.Sold merchandise costing $58,000 for $99,500 on account to
Prentise Furniture Store.
2.Delivered the goods to Prentise under terms FOB destination.
Freight costs were $900 cash.
3.Received returned goods from Prentise. The goods cost Powell
$4,000 and were sold to Prentise for $5,900.
4.Granted Prentise a $3,000 allowance for damaged goods that
Prentise agreed...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Does the Maxwell’s demon violate the 2nd law of thermodynamics? If not, why?
- give an arbitrary list of integers, how many are 3? (in scheme)
- Write a program in Python jupyter notebook for following: Part1: Course grade calculation: Course grades for...
- Write a function void reverse(char * s) that reverses the string passed as an argument. Your...
- Why is it important to remember that even the bad management that you experience can teach...
- Calculate A+B, A-B, AxB, and A/B for each of the following pairs of binary numbers. (Assume...
- Describe the factors that influence pricing decisions in practice.
ADVERTISEMENT