29 Jun 1 Calculating ratios: solve the unkn
Question
1 Calculating ratios: solve the unknown
The current asset section of the Excalibur Tire Company’s balance sheet consists of cash, marketable securities, accounts receivable, and inventories. The December 31, 2011 balance sheet revealed the following:
Inventories 840,000
Total Assets 2,800,000
Current ratio 2.25
Acid –test ratio 1.2
Debt to equity 1.8
Required:
Determine the following 2011 balance sheet items:
1. Current assets
2. Shareholder’s equity
3. Noncurrent assets
4. Long-term liabilities
2 Effect of management decisions on ratios
Most decisions made by management impact the ratios analysts use to evaluate performance. Indicate (by letter) whether each of the actions listed below will immediately increase (I), decrease (D), or have no effect (N) on the ratios shown. Assume each ratio is less than 1.0 before the action is taken.
3 Balance Sheet Errors
You recently joined the internal auditing department of Marcus Clothing Corporation. As one of your firs assignments you are examining a balance sheet prepared by a staff account.
In the course of your examination you uncover the following information pertaining to the balance sheet:
1. The company rents it facilities. The land that appears in the statement is being held for future sale.
2. The note receivable is due in 2013. The balance of 53,000 includes 3,000 of accrued interest. The next interest payment is due in July 2012.
3. The note payable is due in installments of 20,000 per year. Interest on both the notes and b
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.