Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Q1) Following are selected data from comparative income statement and balance sheet for Deerfield Corporation for 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 company started operations. During entire fiscal year ended December 31, 20X8, stock was selling for $45 per share.

Compute 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

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M919935

Have any Question? 


Related Questions in Accounting Basics

Assignment - review of current accounting issuestask -in

Assignment - Review of Current Accounting Issues Task - In your accounting career you will be required to analyse current accounting issues and communicate your theoretical understanding to your professional colleagues a ...

Accounting amp the regulatory environmentin the wake of the

Accounting & The Regulatory Environment In the wake of the accounting and finance scandals of the early 2000s, the regulatory environment for businesses changed dramatically to create more accountability and transparency ...

Balanced scorecard for a service company american express

Balanced scorecard for a service company American Express Company is a major financial services company, noted for its American Express® card. Some of the performance measures used by the company in its balanced scorecar ...

In your accounting career you will be required to analyse

In your accounting career you will be required to analyse current accounting issues and communicate your theoretical understanding to your professional colleagues and your clients. For this assignment assume that you are ...

Learning objective 1 explain accounting language consider

(Learning Objective 1: Explain accounting language) Consider Wal-Mart, a large retailer. Classify the following items as an Asset (A), a Liability (L), or Stockholders' Equity (S) for Wal-Mart: a. Accounts payable b. Com ...

Management accounting - farnsworths fine furniture

Management Accounting - Farnsworth's Fine Furniture Ltd Question 1 - (a) Prepare a new profit statement for Fred, using a variable costing approach (Also known as marginal costing, or the contribution margin approach). Y ...

The costs listed below relate to a variety of different

The costs listed below relate to a variety of different decision situations. Cost Decision 1. Unavoidable fixed overhead Eliminate an unprofitable segment 2. Direct labor Make or buy 3. Original cost of old equipment Equ ...

Bull what are some steps taken by both the fasb and iasb to

• What are some steps taken by both the FASB and IASB to move to fair value measurement for financial instruments? In what ways have some of the approaches differed? • IFRS 9-1: What is component depreciation, and when m ...

Assignment changing the aismigrating to a new accounting

Assignment: Changing the AIS Migrating to a new accounting information system is not an easy task. Many firms have struggled with this process, even though our textbook makes the process seem quite straightforward. Recen ...

Business administration managemntamp commercial sciences

BUSINESS ADMINISTRATION, MANAGEMNT& COMMERCIAL SCIENCES ACCOUNTING 512 ASSIGNMENT The purpose of an assignment is to ensure that the Learner is able to: Demonstrate an understanding of accounting principles. Systematical ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate