- Fill in the blanks (_________) with the correct entries.
|
Assets |
Liabilities |
||
|
Current |
Current |
||
|
Cash |
$ |
Accounts payable |
$ 620,000 |
|
Accounts receivable |
Notes payable to |
$130,000 |
|
|
Less: |
($20,000) |
Accrued wages |
|
|
1,320,000 |
Taxes |
100,000 |
|
|
Inventory |
1,410,000 |
Total current |
$1,250,000 |
|
Total current |
Long-term debt |
||
|
Land |
Stockholders’ |
||
|
Preferred stock |
1,000,000 |
||
|
Plant and equipment |
2,110,000 |
Common stock ($1 |
|
|
Retained earnings |
|||
|
Total stockholders’ |
$3,140,000 |
||
|
Total assets |
$5,390,000 |
Total liabilities |
8.
Given the
following information, compute the current and quick ratios:
·
Cash
$100,000
·
Accounts
receivable 357,000
·
Inventory
458,000
·
Current
liabilities 498,000
·
Long-term
debt 610,000
·
Equity
598,000
9. If a firm has sales of $25,689,000 a year, and the
average collection period for the industry is 45 days, what should this
firm’s accounts receivable be if the firm is comparable to the industry?
11 A firm with sales of $500,000 has an average inventory
of $200,000. The industry average for inventory turnover is four times a
year. What would be the reduction in inventory if this firm were to
achieve a turnover comparable to the industry average?
