Solution-Compare the year-end short-term liquidity position

Compare the year-end short-term liquidity position of this

Assignment Help Finance Basics

Reference no: EM13480515

Mixon Company"s year-end balance sheets show the following:

	2006	2005	2004
Cash	$30,800	$35,625	$36,800
Accounts receivable, net	$88,500	$62,500	$49,200
Merchandise inventory	111,500	82,500	53,000
Prepaid expenses	9,700	9,375	4,000
Plant assets, net	277,500	255,000	229,500
Total assets	518,000	$445,000	$372,500
Accounts payable	$128,900	$75,250	$49,250
Long-term notes payable secured by mortgages on plant assets	$97,500	$102,500	$82,500
Common stock, $10 par value	162,500	162,500	162,500
Retained earnings	129,100	104,750	78,250
Total liabilities and equity	518,000	445,000	372,500

Required:

Compare the year-end short-term liquidity position of this company at the end of 2006, 2005, and 2004 by computing the: (a) current ratio and (b) acid-test ratio. Comment on the ratio results.

Reference no: EM13480515

Questions Cloud

The culminating activity for this class is to write and : assignment instructionsthe culminating activity for this class is to write and submit a research paper. you will be

Assuming that bell manufactures on average 1596 audio : not exactly sure how to fill this out. any help is appreciatedbell company a manufacturer of audio systems started its

Compute index-number trend percents for the following : compute index-number trend percents for the following accounts using year 1 as the base year. state whether the

It was computed from a master manufacturing overhead budget : costello corporation manufactures a single product. the standard cost per unit of product is shown below.direct

Compare the year-end short-term liquidity position of this : mixon companys year-end balance sheets show the following200620052004cash308003562536800accounts receivable

Express the following income statement information in : express the following income statement information in common-size percents and assess whether this companys situation

Smelly perfume company manufactures and distributes several : smelly perfume company manufactures and distributes several different products. they currently use a plant-wide

Winner says it is clear that in decades to come a great : winner says it is clear that in decades to come a great many things like telephone answer machines and automatic bank

The life of a business is divided into specific time : the life of a business is divided into specific time periods usually a year to measure results of operations for each

User Account

All Pages

Compare the year-end short-term liquidity position of this

Reference no: EM13480515

Reference no: EM13480515

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT