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

question 198

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:
Cash $ 38,000
Marketable securities 45,000
Accounts receivable (net) 127,500
Merchandise inventory 149,500
Long-term investments 135,000
Plant assets (net) 517,500
Total assets $ 1,012,500
Liabilities and equity:
Accounts payable $ 148,700
Accrued liabilities 90,000
Notes payable (secured by plant assets)254,800
Common stock ($12 par) 180,000
Contributed capital in excess of par 135,000
Retained earnings 204,000
Total liabilities and equity $1,012,500

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Definitions:

Implementation Stage

The phase in a project or plan when the designed strategies or actions are put into operation or execution.

Plan's Complete Implementation

The full execution of a strategy or project according to its specified plans and processes, ensuring that all objectives are met and the desired results are achieved.

Decision Making

The process of choosing among different alternatives to achieve a desired outcome.

Systematic Thinking

It involves looking at the whole picture, considering all factors and how they interrelate, rather than focusing on parts in isolation.