A Corporation Reports the Following Year-End Balance Sheet Data

question 18

Short Answer

A corporation reports the following year-end balance sheet data. Calculate the following ratios:
(a) working capital
(b) acid-test ratio
(c) current ratio
(d) debt ratio
(e) equity ratio
(f) debt-to-equity ratio
Cash……………………….. $ 50,000 Current liabilities $ 64,000 Accounts receivable………. 35,000 Long-term liabilities………. 72,000
Inventory………………….. 60,000 Common stock…………….. 100,000
Equipment………………… 140,000 Retained earnings…………. 49,000 Total assets……………….. $285,000 Total liabilities and equity $285,000

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Definitions:

Units

A measure of quantity or amount used to represent the volume of production, sales, or inventory.

Budgeted Production

Budgeted production refers to the anticipated quantity of goods a company plans to produce over a certain period, based on expected demand and resource availability.

Ending Inventory

The total value of all inventory still available for sale at the end of an accounting period.

Units

Individual instances or elements, often used to quantify or measure.