Compute the current and acid-test ratios at december

Assignment Help Financial Accounting
Reference no: EM13887627

Willingham Company has the following comparative balance sheet data.

Willingham Company Balance Sheets December 31

 

2014

2013

Cash

$  10,000

$  30,000

Receivables (net)

70,000

50,000

Inventory

60,000

50,000

Plant assets (net)

205,000

190,000

 

$345,000

$320,000

Accounts payable

$  50,000

$  60,000

Mortgage payable (15%)

100,000

100,000

Common stock, $10 par

140,000

120,000

Retained earnings

55,000

40,000

 

$345,000

$320,000

Additional information for 2014:

1. Net income was $25,000.

2. Sales on account were $410,000. Sales returns and allowances were $20,000.

3. Cost of goods sold was $187,000.

Instructions

Compute the following ratios at December 31, 2014.

(a) Current.

(b) Acid-test.

(c) Receivables turnover.

(d) Inventory turnover.

Reference no: EM13887627

Questions Cloud

How much time does it take to change your displacement : As you walk to class with a constant speed of 1.55m/s , you are moving in a direction that is 19.1?north of east. How much time does it take to change your displacement by 25.0m east?
Threads to improve the performance of a sort algorithm : In previous assignments, you used threads to improve the performance of a sort algorithm. Threads were initially applied in order to achieve processing concurrency in order to reduce the time required to sort data.
Prepare an income statement beginning with income : Prepare an income statement, beginning with income from continuing operations. Indicate the statement presentation of any item not included in (a) above.
Determine their itemized deduction for interest paid : Mr. and Mrs. Udall live in a home that Mrs. Udall inherited from her parents. This year, the Udalls took out a first mortgage on the home. Determine their itemized deduction for interest paid on the mortgage in each of the following cases: a. The int..
Compute the current and acid-test ratios at december : Compute the following ratios at December 31, 2014. Current, Acid-test, Receivables turnover and Inventory turnover.
Compute the income tax and medicare contribution tax : Ms. Imo, who is single, purchased her first home in 1991 for $85,000, and sold it in May 2000 for $178,500. She purchased her second home in July 2000 for $385,000 and sold it this year for $700,000. a. Compute Ms. Imo's taxable gain on the 2000 sale..
What average speed do you need for the rest of the trip : On your wedding day you leave for the church 35.0 minutes before the ceremony is to begin, which should be plenty of time since the church is only 10.0 miles away.
How much gain did they recognize on sale : How much gain did they recognize on sale of their old residence? On February 26, 2015, Mr. and Mrs. Nixon sold their new residence for a $48,000 realized gain and moved into a nearby house with a swimming pool. How much gain did they recognize? How m..
Strong-field zeeman splitting : Consider  the  (eight)  n  = 2  states,  12 / m1 ms}.  Find  the  energy  of each  state, under  strong-field  Zeeman  splitting.  Express each answer as the sum of three tenns:

Reviews

Write a Review

Financial Accounting Questions & Answers

  Revenue recognition fraud

Research the Internet to find a relevant article about revenue recognition fraud from an accounting publication or authoritative source regarding revenue recognition fraud.

  Write a report to the client - geolab exploration limited

A two-column common-size statement of financial performance and statement of financial position for Geolab. The first column of each statement should present Geolab's common-size statement, and the second column should show the industry averages.

  As the representative from your accounting firm or practice

as the representative from your accounting firm or practice you are in charge of stock market analysis that will be

  Compute the cost-driver rate for each overhead activity

hat is a likely explanation for this? Direct your response in terms of the current allocation base used and how the recently adopted robotics system is changing the past cost allocation system.

  What was his beginning-of-the-year basis in his partnership

John has a 20% stake in the Partnership and receives no distributions from the partnership during the year. He has a $55,000 basis in her partnership interest at the end of the year after all income/loss items have been passed through to her. W..

  What is the amount of interest winrow must pay bondholders

Winrow Company received proceeds of $565,500 on 10-year, 8% bonds issued on January 1, 2013. The bonds had a face value of $600,000, pay interest annually on December 31st, and have a call price of 101. Winrow uses the straight-line method of amortiz..

  Identify the type of lease involved for the lessee

Identify the type of lease involved for the lessee and the lessor, and give reasons for your classifications and prepare all the journal entries for both the lessee and the lessor for 2007 and 2008.

  Manufacturing costs

Manufacturing costs are

  What should be average property tax per unit

To the nearest whole cent, what should be the average property tax per unit at a sales volume of 49,700 units? (Assume that this sales volume is within the relevant range.)

  Business bad debt is deductible for tax purposes

A business bad debt is deductible for tax purposes as a(n):

  Computation of basic and diluted earnings per share

Determine the number of shares used to compute basic earnings per share for the year and determine the number of shares used to compute diluted earnings per share for the year ended December 31, 2011.

  Critically evaluate the main argument or arguments

In the Book "Looming Tower". 1. Critically evaluate the main argument or arguments in the book. Does Wright ? s basic argument about what Al Qaeda is, who Bin Laden and al - Zawahiri and other characters are and how Al Qaeda dev eloped present a fair..

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