Calculate the quick ratio at december

Assignment Help Accounting Basics
Reference no: EM131715479

Question - Seaforce Manufacturing Inc. Income Statement Year Ended December 31, 20X5

Sale

 

$ 340,000

Cost of goods sold

 

$ 250,100

Gross Profit

 

$ 89,900

Operating Expenses

$ 55,000

 

Loss on Sale of equipment

$ 2,500

$ 57,500

Profit from Operations

 

$ 32,400

Other expenses

 

 

Interest Expense

 

$ 3,500

Profit before Income Tax

 

$ 28,900

Income Tax Expense

 

$ 12,000

Profit

 

$ 16,900

Additional Information:

1. Operating expenses include depreciation expense of $10,000

2. Accounts Payable related to the purchase of inventory

3. Equipment that cost $12,500 was sold at a loss of $2,500

4. New equipment was purchased during the year for $8,500

5. Dividends declared and paid in 20X5 totalled $3,000

6. Common shares were sold for $12,000 cash

7. Interest payable in 20X5 was $800 greater than interest payable in 20X4

Seaforce Manufacturing Inc. comparative balance sheet at December 31 20X5

 

20X5

20X4

Cash

$ 6,450

$ 4,100

Accounts Receivable

$ 72,000

$ 6,500

Inventory

$ 110,250

$ 140,000

Prepaid Expenses

$ 1,750

$ 1,020

Equipment

$ 96,000

$ 100,000

Accumulated Depreciation - equipment

$ (50,000)

$ (42,000)

Total Assets

$ 236,450

$ 209,620

 

 

 

Account Payable

$ 16,230

$ 9,900

Interest Payable

$ 810

$ 10

Income taxes payable

$ 10,800

$ 9,500

Dividends Payable

$ 1,800

$ 2,800

Long-term Notes Payable

$ 55,000

$ 62,000

Common shares

$ 135,000

$ 123,000

Retained Earnings

$ 16,310

$ 2,410

Total Liabilities & Shareholders' Equity

$ 236,450

$ 209,620

Round answers to fit 2 decimal places in all questions (in % questions a 0.12 is presented as 12%, so a 0.124 is rounded as 12% and 0.127 is rounded as 13%)

The quick ratio at December 20X4 was:

A. Between 0.88 and 2.64

B. Not enough data provided to calculate it

C. Equal or above 2.65

D. Between 0.22 and 0.87

E. Equal or below 0.21

Reference no: EM131715479

Questions Cloud

Find national leagues first year of operations : National League Gear has two classes of stock authorized: 6%, $20 par preferred, and $5 par value common
Identify performance measurement : Identify one performance measurement for each of the following factors: financial, customer satisfaction, internal processes, and employee performance.
Breath and the lungs expand : If someone takes a breath and the lungs expand from 4.2 L to5.3 L in volume, and the initial pressure was752 mm Hg
Discuss the accuracy of the comments made in this discussion : You hear two people debating the merits of women as leaders. Discuss the accuracy of the comments made in this discussion.
Calculate the quick ratio at december : Operating expenses include depreciation expense of $10,000, Accounts Payable related to the purchase of inventory, The quick ratio at December 20X4 was
Prepare a horizontal analysis of sports unlimiteds : Prepare a horizontal analysis of Sports Unlimited's 2015 balance sheet using 2014 as the base year
True about the completion time of a project : Which of the following statements is TRUE about the completion time of a project?
Discuss problem of the hash codes : Use HashCalc to check the hash codes on the two identical files. Once it is determined the two files have the same hash codes.
Job specialization do you usually notice in these operations : Most of us have watched pizzas being made while waiting in a pizzeria. What level of job specialization do you usually notice in these operations?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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