Exam 2: A Further Look at Financial Statements

Which of the following is not classified properly as a current asset?

Using the following balance sheet and income statement data what is the current 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

Based on the following data what is the amount of current assets? Accounts payable. \6 2,000 Accounts receivable 100,000 Cash. 70,000 Intangible assets. 100,000 Inventory. 138,000 Long-term investments. 160,000 Long-term liabilities. 200,000 Short-term investments. 80,000 Notes payable (short-term) 56,000 Property, plant, and equipment. 1,340,000 Prepaid insurance. 2,000

Long-term creditors consider a lower debt to assets ratio to be less risky.

Both investors and creditors have an interest in a company's ability to generate favorable cash flows.

The current ratio is

Using the following balance sheet and income statement data what is the total amount of working capital? 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

The current ratio is computed as current liabilities divided by current assets.

The debt to assets ratio is computed by dividing

Use the following data to determine the total dollar amount of assets to be classified as current assets. Edie's Flomer Shoppe Balance Sheet December 31,2022 Cash \ 126,000 Accounts receivable 120,000 Inventory 210,000 Prepaid insurance 90,000 Stock investments 255,000 Land 285,000 Buildings \ 339,000 Less: Accumulated depreciation (60,000) 279,000 Trademarks 210,000 Total assets \ 1575,000 Accounts payable \ 165,000 Salaries and wages payable 30,000 Mortgage payable 270,000 Total liabilities 465,000 Common stock \ 360,000 Retained earnings 750,000 Total stockholders' equity 1,110,000 Total liabilities and stockholders' equity \ 1,575,000

Intangible assets are

Current assets divided by current liabilities is known as the

N3 Corporation has assets of $4200000 common stock of $1092000 and retained earnings of $665000.What are the creditors' claims on their assets?

Which of the following would not be classified as a long-term liability?

The current ratio is calculated by dividing current assets by current liabilities.

Stockholders' equity is divided into two parts: common stock and retained earnings.

A current asset is

Trademarks would appear in which balance sheet section?

Use the following data to determine the total dollar amount of assets to be classified as current assets. 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

Using the following balance sheet and income statement data what is the total amount of working capital? Current assets \ 32,000 Net income \ 42,000 Current liabilities 16,000 Stockholders' equity 78,000 Average assets 160,000 Total liabilities 42,000 Total assets 120,000