Reference no: EM132344961

Question

1 For the FY 2016, Alpha Company's balance sheet included the following current items: cash $40,000, accounts receivable $160,000, inventories $100,000, prepaid expenses $20,000, accounts payable $90,000, and accrued expenses $70,000. Use this information to determine the: (Round & enter your answers to one decimal place for non-dollar ratios and enter the value. For dollar ratio enter as whole dollars only.)

1. Quick Ratio

2. Current Ratio

3. Working Capital

2 The following financial information is for Alpha Corporation are for the fiscal years ending 2017 & 2018 (all balances are normal):

Item/Account                2018         2017

Accounts Receivable     $9,800        $9,400

Inventory                   30,000        16,000

Net Sales (all credit)    85,000        71,000

Cost of Goods Sold     62,000          52,000

Net Income               7,200           6,900

Use this information to determine for FY 2018: (Round & enter your answers to one decimal place and enter the value.)

1. the inventory turnover ratio

2. number of days of inventory

3. gross profit margin

3. profit margin

3 The following information is related to Alpha Company's fiscal year 2017.

Income Statement:

Net Income $300,000

Depreciation Expense 50,000

Gain on Sale of Plant Assets 10,000

Interest Expense 500

Balance Sheet - 12/31/17: Increase (Decrease)

Accounts Payable ($4,000)

Plant Assets - Purchased 250,000

Plant Assets - Disposals (100,000)

Additional Information:

Cash Balance - 12/31/2016: $50,000

Common Stock exchanged for outstanding Long Term Notes Payable of $125,000

Dividends paid were $25,000

Use this information to prepare the Statement of Cash Flows for Alpha Company using the indirect method.