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:

Commoditization

The process by which unique products become indistinguishable from one another in the eyes of the market, often leading to competition based primarily on price.

Product Accessories

Supplementary items sold alongside the main product to enhance its functionality or appeal.

Negative Profitability

A financial situation where a business or organization incurs more expenses than revenues, leading to a net loss.