The Following Data Are Taken from the Financial Statements of Edington

question 87

Essay

The following data are taken from the financial statements of Edington Company. The data are in alphabetical order. $\begin{array}{lrlr}\text { Accounts payable } & \$ 28,000 & \text { Net sales } & 500,000 \\\text { Accounts receivable } & 65,000 & \text { Other current liabilities } & 20,000 \\\text { Average common shares out. } & 20,000 & \text { Salaries and wages payable } & 7,000 \\\text { Cash } & 56,000 & \text { Stockholders' equity } & 135,000 \\\text { Gross profit } & 190,000 & \text { Total assets } & 300,000\\\text { Net income } \quad 50,000\end{array}$ Instructions
Compute the following:
(a) Current ratio. (c) Earnings per share.
(b) Working capital. (d) Debt to assets ratio.

---

Definitions:

Dishonored Note

A promissory note that has not been paid by the debtor at the time it is due.

Collection Efforts

Activities undertaken by a business or organization to pursue and recover funds owed by customers or clients.

Convert Receivables

The process of transforming accounts receivable (money owed to a company by its customers) into cash.

Before Due

Refers to actions or events occurring prior to a specified deadline or due date.