Exam 2: A Further Look at Financial Statements

K2 Corporation has assets of $3600000 common stock of $936000 and retained earnings of $570000.What are the creditors' claims on their assets?

Kingery Corporation has current assets of $1800000 and current liabilities of $750000.If they issue $150000 of new stock what will their new current ratio be? (rounded)

On a classified balance sheet companies usually list current assets

Using the following balance sheet and income statement data for Castillo Company what is the company's working capital at the period? Current assets \ 41,000 Net income \ 48,000 Current liabilities 22,000 Stockholders' equity 75,000 Average assets 210,000 Total liabilities 125,000 Total assets 200,000

Use the following data to determine the total dollar amount of assets to be classified as property plant and equipment. Koonce Office Supplies Balance Sheet December 31,2022 Cash \ 195,000 Accounts receivable 150,000 Inventory 165,000 Prepaid insurance 90,000 Stock investments 255,000 Land 270,000 Buildings \3 15,000 Less: Accumulated depreciation (60,000) 255,000 Trademarks 210,000 Total assets \ 1590,000 Accounts payable \ 210,000 Salaries and wages payable 30,000 Mortgage payable 240,000 Total liabilities 480,000 Common stock 360,000 Retained earnings 750,000 Total stockholders' equity 1,110,000 Total liabilities and stockholders' equity \ 1590,000

On a classified balance sheet short-term investments are classified as

It is not true that current assets are resources that are expected to be

Which of the following is not considered an asset?

The debt to assets ratio measures the percentage of assets financed by creditors.

Which statement about long-term investments is not true?

Solvency ratios measure the ability of a company to survive over a short period of time.

Ratios that measure the income or operating success of a company for a given period of time are

Using the following balance sheet and income statement data what is the debt to assets ratio? Current assets \ 21,000 Net income \ 45,000 Current liabilities 12,000 Stockholders' equity 63,000 Average assets 132,000 Total liabilities 27,000 Total assets 90,000

Ace Company is a retail store.Due to competition it is having trouble selling its products.Thus inventory has been building up.Ace's current ratio has not changed for the past three years in spite of the inventory build-up.Which of the following statements is true?

The investment category on the balance sheet normally includes investments that are intended to be held for a short period of time (less than one year).

Cash and supplies are both classified as current assets.

Long-term investments appear in the property plant and equipment section of the balance sheet.

Use the following data to determine the total amount of working capital. Carne Auto Supplies Balance Sheet December 31,2022 Cash \ 0,000 Accounts receivable 100,000 Inventory 140,000 Prepaid insurance 80,000 Stock investments 180,000 Land 190,000 Buildings \ 230,000 Less: Accumulated depreciation (60,000) 170,000 Patent 140,000 Total assets \ 1,070,000 Accounts payable \ 130,000 Salaries and wages payable 20,000 Mortgage payable 180,000 Total liabilities 330,000 Common stock 240,000 Retained earnings 500,000 Total stockholders' equity 740,000 Total liabilities and stockholders' equity \ 1,070,000

Solvency is a company's ability to pay interest as it comes due and to repay the balance of a debt due at its maturity.

Mitchell Corporation has current assets of $1600000 and current liabilities of $750000.If they issue $200000 of new stock what will their new current ratio be?