Use the Balance Sheets of Sando Shown Below to Calculate

question 150

Essay

Use the balance sheets of Sando shown below to calculate the following ratios for 2013 (round to the hundredths):
(a)Current ratio
(b)Acid-test ratio
(c)Debt ratio
(d)Equity ratio
$\begin{array}{c} \text { SANDO COMPANY}\\ \text { Balance Sheets }\\ \text { December 31,2013}\\ \begin{array}{|l|r|}\hline \text { Assets: } & \\\hline \text { Cash } & \$ 43,000 \\\hline \text { Accounts receivable } & 38,000 \\\hline \text { Merchandise inventory } & 61,000 \\\hline \text { Prepaid insurance } & 6,000 \\\hline \text { Long-term investments } & 49,000 \\\hline \text { Plant assets (net) } & 218,000 \\\hline \text { Total assets } & \$ 415,000\\\hline\\\hline \text { Liabilities and Equity: } & \\\hline \text { Current liabilities } & \$ 62,000 \\\hline \text { Long-term liabilities } & 45,000 \\\hline \text { Common stock } & 150,000 \\\hline \text { Retained earnings } & 158,000 \\\hline \text { Total liabilities and equity } & \$ 415,000\\\hline \end{array}\end{array}$

---

Definitions:

SCM Software Purchasing

Acquiring software tools used to automate and manage supply chain activities and processes more effectively.

Supply Chain Management System

A software solution that allows businesses to manage and optimize all supply chain activities from planning and procurement to logistics and fulfillment.

Fully Integrated

Systems or processes that are completely interconnected and functioning as a whole, offering seamless functionality across different components or aspects.

Technology System Gaps

Refers to the discrepancies or deficiencies in an organization's technological systems, which can impact operational efficiency and competitiveness.