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Calculate the Quick Ratio and the Times Interest Earned Ratio

question 47

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Calculate the Quick ratio and the times interest earned ratio for the following company.
\begin{array}{c}\text { Gil's Fish and Tackle, Inc.}\\\text { Balance Sheet}\\\text { At December 31, 2007}\\\begin{array}{lr}\text { Assets }\\\text { Cash } & \$ 22,200 \\\text { Accounts Receivable (less allowance) } & 169,100 \\\text { Inventories } & 68,300 \\\text { Property, Plant, and Equipment } & 102,800 \\\text { Long-term Investments } & 30,000 \\\text { Total Assets } & \$ 392,400\\\\\text { Liabilities }\\\text { Accounts Payable } & \$ 49,200 \\\text { Current Portion of Long-Term Debt } & 68,800 \\\text { Bonds Payable } & 100,000 \\\\\text {Total Liabilities}&\underline{218,000}\\\\\text { Shareholders' Equity }\\\text { Contributed Capital } & 100,000 \\\text { Retained Earnings } & 74,400 \\\text { Total Equity } & \underline{174,400} \\\\\text { Total Liabilities and Equity } &\underline{ \$ 392,400}\\end{array}\end{array} Gil’s Fish and Tackle, Inc. Income Statement For the year ended December 31,2007Operating RevenueSales Revenue$2,765,000Operating Revenue2,765,000Operating Expenses Wages Expense 1,850,500 Operating and Admin. Expenses 286,700 Amortization Expense 335,400 Operating Expenses 2.472.600 Operating Income 292,400 Other Expenses  Interest Expense 17.000 Income Before Income Tax Expense 275,400 Income Tax Expense 103.800 Net Income $171.600\begin{array}{c}\text {Gil's Fish and Tackle, Inc. }\\\text {Income Statement}\\\text { For the year ended December 31,2007}\\\begin{array}{lr}\text {Operating Revenue}\\\text {Sales Revenue}&\underline{\$2,765,000}\\\text {Operating Revenue}&\underline{2,765,000}\\\text {Operating Expenses}\\\text { Wages Expense } & 1,850,500 \\\text { Operating and Admin. Expenses } & 286,700 \\\text { Amortization Expense } & \underline{335,400} \\\quad \text { Operating Expenses } & \underline{2.472 .600}\\\\\text { Operating Income } & 292,400\\\\\text { Other Expenses } & \\ \text { Interest Expense } &\underline{17.000} \\\\\text { Income Before Income Tax Expense } & \mathbf{2 7 5 , 4 0 0} \\\text { Income Tax Expense } & 103.800 \\& \\\text { Net Income } & \$ 171.600\end{array}\end{array}


Definitions:

Polyamory

The state of being in love, or romantically involved with, more than one person at the same time.

Polygamy

The practice of being married to 2 or more people at one time.

Polyandry

A form of marriage in which a woman has two or more husbands at the same time.

Gynesexual

A sexual orientation characterized by attraction to women or femininity, regardless of the gender identity of the person experiencing the attraction.

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