Solution-What is Climate Times Interest Earned ratio

What is Climate Times Interest Earned ratio

Assignment Help Managerial Accounting

Reference no: EM132461847

Problem - Selected data from Climate Inc. most recent balance sheet and Income Statement appear below.

Assets		Liabilities and Stockholders' Equity
Current Assets		Current Liabilities
Cash	$15,000	Accounts Payable	$257,040
Marketable Securities	375,000	Accrued Payables	98,000
Accounts Receivable, (Net)	125,000	Notes Payable, Short Term	346,000
Inventory	347,000	Total Current Liabilities	701,040
Prepaid Rent	12,000
Supplies	300	Long Term Liabilities
Total Current Assets	876,300	Notes Payable (Due 2021)	450,000
		Bonds Payable	600,000
		Total Long Term Liabilities	1,050,000
Long Term Assets		Total Liabilities	1,751,040
Property Plant Equip.	1,878,500	Stockholders' equity
Land	157,000	Common stock	500,000
Patents	67,000	Retained Earnings	727,760
Total Long Term Assets	2,102,500	Total Stockholders' Equity	1,227,760
Total Assets	$2,978,800	Total Liab. & Stock. Equity	$2978,800

Income Statement -

Sales	$875,050
Cost of Goods Sold	494,550
Gross Margin	380,500
Selling Expenses	160,800
Administrative Expense	149,600
Net Operating Income	70,100
Interest Expense	25,500
Income taxes	31,600
Net income	$13,000

Required -

A. What is Climate's current ratio?

B. What is Climate's Acid-test ratio?

C. What is Climate's Working Capital?

D. What is Climate's Times Interest Earned ratio?

Reference no: EM132461847

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What is Climate Times Interest Earned ratio

Reference no: EM132461847

Reference no: EM132461847

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