Compare the current ratio and acid-test ratio

Assignment Help Financial Accounting

Reference no: EM13172094

Problem

Use the following selected data from Business Solutions' income statement for the three months ended March 31, 2012, and from its March 31, 2012, balance sheet to complete the requirements before computer services revenue, $25,307; net sales (of goods), $18,693; total sales and revenue, $44,000; cost of goods sold, $14,052; net income, $18,833; quick assets, $90,924; current assets, $95,568; total assets, $120,268; current liabilities, $875; total liabilities, $875, and total equity, $119,393.

Questions:

1. Compute the gross margin ratio (both with and without services revenues) and net profit margin ratio.

2. Compare the current ratio and acid-test ratio.

3. Compute the debt ratio and equity ratio.

4. What percent of its assets are current? What percent are long term?

Reference no: EM13172094

Questions Cloud

State the reaction mechanisms could be coupled : the reaction mechanisms could be coupled, how many moles of ATP will be needed to drive

State how many moles of electrons and protons : If 1/2 mole of oxygen are reduced at the end of electron transport, how many moles of electrons and protons are needed in order to accomplish that conversion?

Explain the energy and entropy changes : Many cold packs contain ammonium nitrate and water. The dissolving of ammonium nitrate is endothermic. Which of the following best describes the energy and entropy changes that occur for the ammonium nitrate system

State loop is immersed in a uniform magnetic field : A flat 103-turn current-carrying loop is immersed in a uniform magnetic field. The area of the loop is 5.47 cm2 and the angle between its magnetic dipole moment

Compare the current ratio and acid-test ratio : Compute the gross margin ratio (both with and without services revenues) and net profit margin ratio and compare the current ratio and acid-test ratio.

State a large positive overall voltage from redox : A large positive overall voltage from redox, metabolic step means: a. the process is very non-spontaneous b. change of G is large and positive

Prepare journal entries to record the april purchases : On June 30, 2012, the per share market price (fair value) of the Johnson & Johnson shares is $55 and the Starbucks shares is $19. Prepare the adjusting entry to record any necessary fair value adjustment to its portfolio of trading securities.

State a solution containing iodide ions has a percent : A solution containing iodide ions has a percent transmittance reading of 72.3%. what is the molarity of the iodide ion in this solution

What volume of carbon dioxide gas will be produced : What volume of carbon dioxide gas will be produced at 25 degrees Celcius and 590 mmHg, when 65.0 mL of 0.200 M HCl is treated with excess sodium bicarbonate?

User Account

All Pages