Preparenbsp various ratiosfollowing are selected data from

Assignment Help Financial Accounting
Reference no: EM13356125

Prepare  various ratios.

Following are selected data from the comparative income statement and balance sheet for Deerfield Corporation for the years ended December 31, 20X8 and 20X7:

Selected Data

 

20X8

20X7

Net sales (all on credit)

$97,600

$93,000

Cost of goods sold

53,500

52,500

Gross profit

44,700

40,500

Income from operations

16,300

15,000

Interest expense

3,100

3,500

Net income

9,800

9,000

 

Cash

7,700

7,500

Accounts receivable, net

10,700

12,500

Inventory

20,000

26,000

Prepaid expenses

1,000

900

Total current assets

39,400

46,900

Total long-term assets

50,000

67,000

Total current liabilities

32,000

44,500

Total long-term liabilities

11,000

39,800

Common stock, no par

*10,000

10,000

Retained earnings

25,400

19,600

*NOTE: 2000 shares of common stock have been issued and outstanding since the company started operations.During the entire fiscal year ended December 31, 20X8, the stock was selling for $45 per share.

Calculate the following ratios at December 31, 20X8:
a) acid-test ratio
b) rate of return on total assets
c) times-interest-earned ratio
d) current ratio

Reference no: EM13356125

Questions Cloud

Finding lessors amount to be amortizedcontech lessee wishes : finding lessors amount to be amortized.contech lessee wishes to lease a printing press valued at 60000 from wrenn
Finding economic ordering quantitymedarex is considering : finding economic ordering quantity.medarex is considering the lease of an electronic welder costing 210000 from key
Pay roll account kept under zero balance system calculate : pay roll account kept under zero balance system . calculate pre taxslimware is considering establishing a zero-balance
Cash conversion cycle based on balance sheetgates : cash conversion cycle based on balance sheetgates industries balance sheet and income statement for the year ending
Preparenbsp various ratiosfollowing are selected data from : preparenbsp various ratios.following are selected data from the comparative income statement and balance sheet for
Calculate the rate of return for the following ratiosthe : calculate the rate of return for the following ratios.the following information has been taken from the financial
Prepare vertical analysisfollowing is the income statement : prepare vertical analysis.following is the income statement for commerce corporation for the year ended december 31
Prepare a horizontal analysispresented below is a : prepare a horizontal analysispresented below is a comparative balance sheet for bogues corporation for 20x7 and 20x6.
Multiple choice questions related to capitalization costs : multiple choice questions related to capitalization costs of machinery and alculationnbsp of interest on notes payable

Reviews

Write a Review

Financial Accounting Questions & Answers

  Calculate the n-content by weight in melamine

Calculate the N-content by weight in Melamine and if a diary product is analyzed to have an N-content of 10%, what are the proportions of protein and carbohydrate in this product?

  General transfer pricing rule maximum amount willing to pay

general transfer pricing rule maximum amount willing to pay as transfer price.fragrance inc. has two divisions-the

  Illustrate what were equivalent units for conversion costs

There were 4400 units in the ending work in process inventory of the assembly dept. that were 30% complete with respect to conversion costs. Illustrate what were the equivalent units for conversion costs in the assembly dept. for the month?

  Find cash payments for wages and salaries

Evaluate Cash receipts from selling merchandise and find Cash payments for wages and salaries.

  At what amount should lawrence company carry the parts

The forward contract is properly designated as a fair value hedge of the FC100,000 firm commitment. On June 12, when the company receieves the parts, the spot rate is .23. At what amount should Lawrence Company carry the parts inventory on its ..

  Prepare the journal entry to reflect the accounting

Complete the pension work sheet for 2013. Indicate (credit) entries by parentheses. Calculated amounts should be supported - Prepare the journal entry to reflect the accounting for the company's pension plan for the year ending December 31, 2013.

  Determine the new overhead allocation rate

Determine the new overhead allocation rate (i.e., per MH) assuming that the estimated overhead is $400,000; the estimated MH = 10,000.

  Illustrate what amount of depreciation should be recorded

At the beginning of the machine's sixth year it was recognized the machine had three years of remaining life instead of five and that at the end of the remaining three years its salvage value would be $1,600. Illustrate what amount of depreciatio..

  Illustrate what resource conservation techniques will you

How have you organised your personal work environment in accordance with ergonomic requirements? Illustrate what resource conservation techniques will you adopt as you plan your work activities?

  What''s the beginning balance per the books

What's the beginning balance per the books and What are the total amounts of outstanding checks

  What is the expected rate of return on the project

What is the expected rate of return on the project and what is the project's standard deviation of returns - calculate and interpret the volume and price variances on the revenue side.

  Evaluate the amount of depreciation expense

Evaluate the amount of depreciation expense recognized in Year 2, Year 3, and Year 4 under (a) the revaluation model of IAS 16 and (b) U.S. GAAP. Evaluate the book value of the building under the two different sets of accounting rules at 2 nd Janu..

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