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AC202 analysis

# AC202 analysis - Use the balance sheets of Sando shown...

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Use the balance sheets of Sando shown below to calculate the following ratios for 2008 (round to the hundredths): (a) Current ratio. (b) Acid-test ratio. (c) Debt ratio. (d) Equity ratio. Sando Co. Balance Sheet Deceber 31, 2008 and 2007 Assets: Cash ......................................... \$43,000 \$22,000 Accounts receivable ....................... 38,000 42,000 Merchandise inventory ............... ...... 61,000 52,000 Prepaid insurance ........................ 6,000 9,000 Long-term investments .................... 49,000 20,000 Plant assets (net) ......................... 218,000 218,000 Total assets ............................... 415,000 363,000 Liabilities an Equity Current liabilities ........................... \$62,000 \$75,000 Long-term libilities .......................... 45,000 36,000 Common stock ................................. 150,000 150,000 Retained earnings ............................. 158,000 102,000 Total libilities and equity ................... 415,000 363,000 2008 CURRENT RATIO= CURRENTASSETS/CURRENT LIABILITIES 148000 2.387 62000 (b) Acid-test ratio. (Cash +Accounts receivable)/Current Liabilities 81000 1.306 62000 (c) Debt ratio. Total Debt /Total Assets 45000 0.108 415000 (d) Equity ratio. or Equity Multiplier Total Assets/Equity 415000 1.347 308000

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23. You are planning to deposit \$10,000 today into a bank account. Five years from today you expect to withdraw \$7,500. If the account pays 5% interest per year, how much will remain in the account eight years from today?
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AC202 analysis - Use the balance sheets of Sando shown...

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