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chapter 1 homework - Kelly Legner Acct 815 Chapter 1...

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Kelly Legner Acct 815 Chapter 1 Exercises 3. 2004 Current ratio= Current assets = 14300 = 2.90 Current liabilities 49250 Acid test= cash + cash equivalents + accounts receivable = 86000 = 1.75 Current liabilities 49250 2005 Current ratio = 190000 = 2.52 75250 Acid test = 98125 = 1.30 75250 2006 Current ratio= 240500 = 1.86 128900 Acid test= 119300 = .93 128900 4. 2004 2005 2006 Cash 9.8 8.0 5.9 Accounts Receivable 13.2 14.0 17.1 Merchandise Inventory 14.2 18.4 21.5 Prepaid Expenses 1.1 2.1 1.9 Plant assets, net 61.7 57.5 53.6 Total Assets 100 100 100 Accounts Payable 13.2 16.9 24.9 LT Notes Payable 22.1 23.1 18.8
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Kelly Legner Acct 815 Chapter 1 Common Stock 43.6 36.5 31.4 Retained Earnings 21.1 23.5 24.9 Total Liabilities and Equity 100.0 100.0 100.0 5. 2005 Collection period = Avg Accts Rec = 55850 55850= 38 Sales/360 530000/360 1472 Acct rec turnover = Sales = 530000 = 8.09 Avg Accts Rec 55850 Inventory turnover= cost of sales = 344500 = 5.08 Avg inventory 67750 Days sales inventory = inventory = 82500 = 82500 = 86 days Cost of sales/360 530000/360 1472 Days’ sales in receivable= accounts receivable = 62500 = 42 Sales/360 1472 2006 Collection period = 75500 = 75500 = 40 days 672500/360 1868 Acct rec turnover = 672500 = 8.9 75500 Inventory turnover= 410255 = 4.2 97000 Days in inventory = 111500 = 111500 = 98 days 672500/360 1868 Days’ sales in receivable = 88500 = 88500 = 47 days
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Kelly Legner
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