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073Q3Elearning - statement accounts are unaffected by these...

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Name___ Zhi Pei ________________4-Digit # 7688 __ Section_ 14518 _ Financial Statement Ratios: [073Q3Elearning] The Andrew Company’s current assets were $47,000 at the end of Year 2. Current assets include Cash of $26,000, Accounts Receivable of $7,000 and Inventory of $14,000. Andrew’s non-current assets were $69,000 at the end of Year 2. Non-current assets included Property, Plant & Equipment [PPE] of $52,000 and Investments for $17,000. Andrew’s Net Income for Year 2 was $6,200. Sales for Year 2 were $15,100 and total expenses in the year had been $8,900. Included in those total expenses were tax expense was $2,200, Interest Expense $1,700, Depreciation Expense was $2,900 and Amortization Expense had been $2,100. At the end of Year 2, Andrew’s current liabilities were $39,000 and Andrew’s non- current liabilities were $60,000. Requirement: On January 1, Year 3, the firm borrowed $8,000 by signing a short-term note payable and purchased a machine [PPE] costing $9,000 [PPE] for cash. All income
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Unformatted text preview: statement accounts are unaffected by these transactions. ___ 97.87 % What was the firms current ratio in Year 3 immediately after this transaction on January 1, Year 3? ___ 121.8 __ % What is the firms asset turnover for Year 3 assuming Year 3 Sales are the same as in Year 2? Also assume that the firms assets at the end of Year 3 are same as at the end of Year 2 except for the impacts of the transaction occurring on January 1, Year 3. Requirement: Instead of the facts in the transaction occurring on January 1, Year 3, assume the firm borrowed $8,000 by creating a long-term liability and received cash in that amount. This transaction occurred on January 1, Year 3. Determine the proper values for the ratios below immediately after this January 1, Year 3 transaction occurred. __ 141 % What was the firms current ratio ? $_16,000 _ How much working capital does this firm have immediately after the transaction on January 1, Year 3 as described....
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