Computation of current ratio and acid test ratioscully

Assignment Help Financial Accounting
Reference no: EM13356601

Computation of current ratio and acid test ratio.

Scully Corporation's comparative balance sheets are presented below.

SCULLY CORPORATION

Balance Sheets

31-Dec

 

2008

2007

Cash

$4,300

$3,700

Accounts receivable

21,200

23,400

Inventory

10,000

7,000

Land

20,000

26,000

Building

70,000

70,000

Accumulated depreciation

-15,000

-10,000

Total

$110,500

$120,100

Accounts Payable

$12,370

$31,100

Common Stock

75,000

69,000

Retained earnings

23,130

20,000

Total

$110,500

$120,100

Scully's 2008 income statement included net sales of $100,000, cost of goods sold of $60,000, and net income of $15,000.

Instructions

Compute the following ratios for 2008.
a) Current ratio.
b) Acid-test ratio.

Reference no: EM13356601

Questions Cloud

Identification of several factors of : identification of several factors of materiality.materialityanbspidentify several factors considered by an accountant
Essay type question based on adequate disclosureadequate : essay type question based on adequate disclosure.adequate disclosureanbspbriefly explain what is meant by the principle
Ratio analysis from given income statementlucrative : ratio analysis from given income statement.lucrative corporationconsolidated income statementyear ended december 31
Computation of various balance sheet ratiosscully : computation of various balance sheet ratios.scully corporations comparative balance sheets are presented below.scully
Computation of current ratio and acid test ratioscully : computation of current ratio and acid test ratio.scully corporations comparative balance sheets are presented
Horizontal and vertical analysis of income : horizontal and vertical analysis of income statement.financial information for blevins inc. is presented
Multiple choice questions based on basics of : multiple choice questions based on basics of accounts.1.nbspcommunication of economic events is the part of the
After tax cost of debt and preferred stock1 calculate the : after tax cost of debt and preferred stock.1. calculate the after-tax cost of a 25 million debt issue that a company
Recalculating cost of equity - wacc1nbspecology labs inc : recalculating cost of equity - wacc.1.nbspecology labs inc. will pay a dividend of 3 per share in the next 12 months

Reviews

Write a Review

Financial Accounting Questions & Answers

  How much total cost would be allocated to assembly activity

Aberdeen Corp. uses activity-based costing system with three activity cost pools. The following cost information is provided: How much total cost would be allocated to the Assembly activity cost pool?

  Compute the net present value of each project

a salvage value of zero, and is expected to increase net annual cash flows by $46,460. A discount rate of 9% is appropriate for both projects. Compute the net present value of each project.

  Prepare a trial balance as of december 31

Prepare a trial balance as of December 31, 2011. There is no need to show your ledger T-accounts; however, preparing and posting to T-accounts may aid in the preparation of the trial balance.

  Illustrate what is the minimum transfer price

Top management of PFC International would like the Heating Division to transfer 15,000 heating units to another division within the company at a price of $29. The Heating Division is operating at full capacity. Illustrate what is the minimum transf..

  Compute the npv of each alternative

The combined federal and state tax rate is 40 percent. Compute the NPV of each alternative. Should the company keep the old MRI equipment or buy the new one?

  Elucidate the evidence produced by the performance

Elucidate the evidence produced by the performance of procedures and decide whether management's assertions conform to generally accepted accounting principles and reality

  Check control procedures

Check one or more control procedures (either general or application controls or both) that would guard against the error.

  Evaluate depreciation expense for the years 2011

Evaluate depreciation expense for the years 2011 during 2013 under every depreciation listed below: Stright-line, with fractional years rounded to the closed whole month.

  Explain how much of the reimbursement must he include

Assume that Aaron’s other itemized deductions in 2011 were $6,300 and that he filed as a head of household. Explain how much of the $1,300 reimbursement must he include in gross income in 2012?

  Standard fraud risk assessment question

the interests of catharsis and a civil society - I want you to conclude by discussing (briefly) any preventive or detective controls could be put into place to address your scheme.

  What are the production elasticities of demand for labor

What are the production elasticities of demand for labor, capital (trucks) and energy? b. If worker hours (labor) are increased by 10% next year, how much will output (Q) increase?

  Block company issued a 20000 10 year bond on 712008 when

block company issued a 20000 10 year bond on 712008 when the market rate was 6.5. assume that the accounting year of

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd