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28 Sep 2019
A company has asked you to determine whether the companyability to pay it's current liabilities and it's total liabilitiesimproved or deteriorated in 2015.
2015 2014
CASH $58,000. $75,000.
SHORT-TERM INVESTMENTS 31,000. 0
NET ACCOUNTS RECEIVABLE 110,000. 132,000.
MERCHANDISE INVENTORY 247,000. 297,000
TOTAL ASSETS 585,000. 535,000.
TOTAL CURRENT LIABILITIES 255,000. 222,000.
LONG-TERM NOTES PAYABLE 46,000. 48,000.
INCOME FROM OPERATIONS 180,000. 153,000.
INTEREST EXPENSE 52,000. 39,000.
Compute the following ratios for 2015 and 2014, andevaluate the company's ability to pay it's current and totalliabilities. a. Current ratio b. Cash ratio c. Acid-test ratio d.Debt ratio e. Debt to equity ratio,
A company has asked you to determine whether the companyability to pay it's current liabilities and it's total liabilitiesimproved or deteriorated in 2015.
2015 2014
CASH $58,000. $75,000.
SHORT-TERM INVESTMENTS 31,000. 0
NET ACCOUNTS RECEIVABLE 110,000. 132,000.
MERCHANDISE INVENTORY 247,000. 297,000
TOTAL ASSETS 585,000. 535,000.
TOTAL CURRENT LIABILITIES 255,000. 222,000.
LONG-TERM NOTES PAYABLE 46,000. 48,000.
INCOME FROM OPERATIONS 180,000. 153,000.
INTEREST EXPENSE 52,000. 39,000.
Compute the following ratios for 2015 and 2014, andevaluate the company's ability to pay it's current and totalliabilities. a. Current ratio b. Cash ratio c. Acid-test ratio d.Debt ratio e. Debt to equity ratio,
Casey DurganLv2
28 Sep 2019