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

question 21

Essay

The current year-end balance sheet data for a company are shown below:
$\begin{array}{|l|r|}\hline \text { Assets: } & \\\hline \text { Cash } & \$ 18,000 \\\hline \text { Marketable securities } & 45,000 \\\hline \text { Accounts receivable (net) } & 157,500 \\\hline \text { Merchandise inventory } & 139,500 \\\hline \text { Long-term investments } & 135,000 \\\hline \text { Plant assets (net) } & 517,500 \\\hline \text { Total assets } & \$ 1,012,500\\\hline \\\hline \text { Liabilities and equity: } & \\\hline \text { Accounts payable } & \$ 168,700 \\\hline \text { Acctued liabilities } & 90,000 \\\hline \text { Notes payable (secured by plant assets) } & 234,800 \\\hline \text { Common stock ( } \$ 12 \text { par) } & 180,000 \\\hline \text { Contributed capital in excess of par } & 135,000 \\\hline \text { Retained earnings } & 204,000 \\\hline \text { Total liabilities and equity } & \$ 1,012,500 \\\hline\end{array}$

Calculate this company's:
(1)Working capital.
(2)Acid-test ratio.

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Definitions:

Marginal Product

The additional output generated by employing one more unit of a specific input, while holding other inputs constant.

Labor

The effort of humans, including both physical and mental labor, utilized in creating goods and providing services.

Marginal Product

The increase in output resulting from a one-unit increase in the amount of a single input while holding other inputs constant.

Average Product

The total output produced per unit of a factor of production, calculated as total product divided by the quantity of the factor used.