Calculate the current ratio. fill in the blank 1 2. Calculate the quick ratio (acid-test ratio). fill in the blank 2
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Calculating the
Hannah Company has current assets equal to $3,800,000. Of these, $1,200,000 is cash, $1,800,000 is accounts receivable, $500,000 is inventory, and the remainder is marketable securities. Current liabilities total $2,073,000.
Required:
Note: Round answers to two decimal places.
1. Calculate the current ratio.
fill in the blank 1
2. Calculate the quick ratio (acid-test ratio).
fill in the blank 2
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- Calculating the Current Ratio and the Quick (or Acid-Test) Ratio Hannah Company has current assets equal to $3,800,000. Of these, $1,200,000 is cash, $1,800,000 is accounts receivable, $500,000 is inventory, and the remainder is marketable securities. Current liabilities total $1,942,000. Required: Note: Round answers to two decimal places. 1. Calculate the current ratio. 2. Calculate the quick ratio (acid-test ratio).Calculating the Current Ratio and the Quick (or Acid-Test) Ratio LoLo Lemon Company has current assets equal to $500,000. Of these, $300,000 is cash, $75,000 is accounts receivable, $125,000 is inventory, and the remainder is marketable securities. Current liabilities total $425,000. Required: Note: Round answers to two decimal places. 1 Esiculate the current ratio. 2. Calculate the quick ratio (acid-test ratio).Calculating the Current Ratio and the Quick for Acid Test) Ratis LoLo Lemon Company has current assets equal to $500,000. Of these, $300,000 is cash, $75,000 is accounts receivable, $125,000 is inventory, and the remainder is marketable securities. Current liabilities total $425,000. Required: Note: Round answers to two decimal places. 1. Calculate the current ratio.
- The Jamesway Printing Corporation has current assets of $3.2 million. Of this total, $1.2 million is inventory, $0.5 million is cash, $1.0 million is accounts receivable, and the balance is marketable securities. Jamesway has $1.5 million in current liabilities. Round your answers to two decimal places. a. What are the current and the quick ratios for Jamesway? Current ratio: X Quick ratio: b. If Jamesway takes $0.25 million in cash and pays off $0.25 million of current liabilities, what happens to its current and quick ratios? What happens to its real liquidity? New current ratio: X New quick ratio: c. If Jamesway sells $0.6 million of its accounts receivable to a bank and uses the proceeds to pay off short-term debt obligations, what happens to its current and quick ratios? New current ratio: New quick ratio: d. If Jamesway sells $1.2 million in new stock and places the proceeds in marketable securities, what happens to its current and quick ratios? New current ratio: New quick…Ratio Analysis A. Chen Company has current assets equal to P5,000,000. Of these, P1,000,000 is cash, P2,250,000 is accounts receivable, P500,000 is inventory, and the remainder is marketable securities. Current liabilities total P4,000,000. Required: (Round answer to one decimal place) 1. Calculate the current ratio 2. Calculate the quick ratioThe condensed financial statements of Ivanhoe Company for the years 2020-2021 are presented below: (See Images) Compute the following financial ratios by placing the proper amounts for numerators and denominators. (Round per unit answers to 2 decimal places, e.g. 52.75.) (a) Current ratio at 12/31/21 $ $ (b) Acid test ratio at 12/31/21 $ $ (c) Accounts receivable turnover in 2021 $ $ (d) Inventory turnover in 2021 $ $ (e) Profit margin on sales in 2021 $ $ (f) Earnings per share in 2021 $ (g) Return on common stockholders’ equity in 2021 $ $ (h) Price earnings ratio at 12/31/21 $ $ (i) Debt to assets at 12/31/21 $ $ (j) Book value per share at 12/31/21 $
- ABC has the following current assets: cash, $102 million; receivables, $94 million; inventory, $182 million; other current assets, $18 million. ABC also has the following liabilities: accounts payable, $98 million; long-term debt, $23 million. Based on these amounts, what is the acid-test ratio ? Numeric Response:?????????Consider this simplified balance sheet for Geomorph Trading: Current assets Long-term assets $ 110 510 Net working capital $ 620 a. Debt-equity ratio b Long-term debt-to-capital ratio C. d. Current ratio a. What is the company's debt-equity ratio? (Round your answer to 2 decimal places.) b. What is the ratio of total long-term debt to total long-term capital? (Round your answer to 2 decimal places.) c. What is its net working capital? d. What is its current ratio? (Round your answer to 2 decimal places.) Current liabilities Long-term debt Other liabilities Equity $ 65 275 80 200 $ 620Assume that the current ratio for Arch Company is 3.5, its acid-test ratio is 1.5, and its working capital is $330,000. Answer each of the following questions independently, always referring to the original information. Required: a. How much does the firm have in current liabilities? Note: Do not round intermediate calculations. b. If the only current assets shown on the balance sheet for Arch Company are Cash, Accounts Receivable, and Merchandise Inventory, how much does the firm have in Merchandise Inventory? Note: Do not round intermediate calculations. c. If the firm collects an account receivable of $101,000, what will its new current ratio and working capital be? Note: Round "Current ratio" to 1 decimal place. d. If the firm pays an account payable of $53,000, what will its new current ratio and working capital be? Note: Do not round intermediate calculations. Round "Current ratio" to 1 decimal place. e. If the firm sells inventory that was purchased for $50,000 at a cash price…
- The financial statements for Royale and Cavalier companies are summarized here: Cavalier Royale Company Company Balance Sheet $ 31,000 61,000 122,000 562,000 146,000 $ 51,000 22,000 37,000 172,000 52,000 Cash Accounts Receivable, Net Inventory Equipment, Net Other Assets $ 922,000 $ 334,000 $ 27,000 67,000 216,000 10,000 14,000 $ 334,000 Total Assets $ 132,000 202,000 486,000 56,000 Current Liabilities Notes Payable (long-term) Common Stock (par $20) Additional Paid-In Capital Retained Earnings 46,000 Total Liabilities and Stockholders' Equity $ 922,000 Income Statement $ 818,000 $ 298,000 156,000 101,000 Sales Revenue Cost of Goods Sold 486,000 246,000 Other Expenses $ 86,000 $ 41,000 Net Income Other Data $ 18.00 $ 15.00 Per share price at end of year Selected Data from Previous Year Accounts Receivable, Net Notes Payable (long-term) Equipment, Net Inventory Total Stockholders' Equity $ 53,000 202,000 562,000 101,000 588,000 $ 20,000 67,000 172,000 44,000 240,000 These two companies…Calculating the Debt Ratio and the Debt-to-Equity Ratio Ernst Company's balance sheet shows total liabilities of $32,766,300, total stockholders' equity of $8,998,000, and total assets of $41,764,300. Required: 1. Calculate the debt ratio. Round the percentage to two decimal places.fill in the blank 1% 2. Calculate the debt-to-equity ratio. Round to two decimal places.fill in the blank 2Calculate the following ratios for 2021 using working Excel formulas. Make sure to label each appropriately using the following cell (number of days, number of times, etc.) Round each answer to 2 decimal places (example: ROE of .1678 should display as 16.78%): Current Ratio Quick Ratio Debt to Equity Ratio Equity Multiplier Times Interest Earned Dividend Yield Inventory Turnover Days’ Sales in Inventory Receivables Turnover Days’ Sales in Receivables Total Asset Turnover Profit Margin Return on Assets Return on Equity P/E Ratio 2.Calculate Return on Equity (ROE) for 2021 using the Dupont