The Current Year-End Balance Sheet Data for a Company Are

question 252

Essay

The current year-end balance sheet data for a company are shown below.Calculate the company's:
(a)working capital
(b)current ratio
(c)acid-test ratio.
Assets:
$$\begin{array} { l l } \text { Cash } & \$ 38,000 \\\text { Marketable securities } & 45,000 \\\text { Accounts receivable (net) } & 127,500 \\\text { Merchandise inventory } & 149,500 \\\text { Long-term investments } & 135,000 \\\text { Plant assets (net) } & \$ 17,500 \\\text { Total assets } & \$ 1,012,500\end{array}$$
Liabilities and equity:
$$\begin{array} { l c } \text { Accounts payable } & \$ 148,700 \\\text { Accrued liabilities } & 90,000 \\\text { Notes payable (secured by plant assets) } & 254,800 \\\text { Common stock (\$1 2 par) } & 180,000 \\\text { Contributed capital in excess of par } & 135,000 \\\text { Retained earnings } & \underline { 204,000 } \\\text { Total liabilities and equity } & \$ 1,012,500\end{array}$$

---

Definitions:

Endocrine System

A collection of glands that produce hormones regulating metabolism, growth, sexual function, and mood among other functions.

Growth Hormones

Hormones that stimulate growth, cell reproduction, and cell regeneration in humans and other animals.

Total Sleep Time

The overall duration of sleep, including all stages of sleep, within a specific period, typically measured over one night.

Advancing Age

The process of growing older, typically associated with physical, cognitive, and social changes.