Norsk Optronics, ALS, of Bergen, Norway, had a current ratio of2 on June 30 of the current year. On that date, the companyâsassets were:
Cash $ 78,000 Accounts receivable,net 390,000 Inventory 750,000 Prepaidexpenses 8,000 Plant and equipment,net 1,820,000 Total assets $ 3,046,000
Required:
1. What was the companyâs working capital on June 30?
2. What was the companyâs acid-test ratio on June 30?
Norsk Optronics, ALS, of Bergen, Norway, had a current ratio of2 on June 30 of the current year. On that date, the companyâsassets were: |
| Cash | $ | 78,000 | ||||||
| Accounts receivable,net | 390,000 | |||||||
| Inventory | 750,000 | |||||||
| Prepaidexpenses | 8,000 | |||||||
| Plant and equipment,net | 1,820,000 | |||||||
| Total assets | $ | 3,046,000 | ||||||
| ||||||||
Related questions
Norsk Optronics, ALS, of Bergen, Norway, had a current ratio of2 on June 30 of the current year. On that date, the companyâsassets were: |
| Cash | $ | 60,000 | |
| Accounts receivable,net | 450,000 | ||
| Inventory | 660,000 | ||
| Prepaidexpenses | 10,000 | ||
| Plant and equipment,net | 1,860,000 | ||
| Total assets | $ | 3,040,000 | |
| Required: |
| 1. | What was the companyâs working capital on June 30? |
| 2. | What was the companyâs acid-test ratio on June 30?(Round your answer to 2 decimal places.) |
Recent financial statements for Madison Company follow: |
| Madison Company Balance Sheet June 30 | ||||||
| Assets | ||||||
| Current assets: | ||||||
| Cash | $ | 22,000 | ||||
| Accounts receivable, net | 250,000 | |||||
| Merchandise inventory | 400,000 | |||||
| Prepaid expenses | 9,000 | |||||
| Total currentassets | 681,000 | |||||
| Plant and equipment,net | 880,000 | |||||
| Total assets | $ | 1,561,000 | ||||
| Liabilitiesand Stockholders' Equity | ||||||
| Liabilities: | ||||||
| Current liabilities | $ | 210,000 | ||||
| Bonds payable, 11% | 320,000 | |||||
| Totalliabilities | 530,000 | |||||
| Stockholdersâequity: | ||||||
| Common stock, $5 par value | $ | 180,000 | ||||
| Retained earnings | 851,000 | |||||
| Total stockholdersâequity | 1,031,000 | |||||
| Total liabilitiesand stockholders' equity | $ | 1,561,000 | ||||
| Madison Company Income Statement For the Year Ended June 30 | |||
| Sales | $ | 2,220,000 | |
| Cost of goodssold | 1,200,000 | ||
| Gross margin | 1,020,000 | ||
| Selling andadministrative expenses | 650,000 | ||
| Net operatingincome | 370,000 | ||
| Interestexpense | 35,200 | ||
| Net income beforetaxes | 334,800 | ||
| Income taxes | 100,440 | ||
| Net income | $ | 234,360 | |
Account balances at the beginningof the companyâs fiscal year were: accounts receivable, $160,000;and inventory, $300,000. All sales were on account. |
Assume that Madison Company paid dividends of $3.25 per shareduring the year. Also assume that the companyâs common stock had amarket price of $71.00 per share on June 30 and that there was nochange in the number of outstanding shares of common stock duringthe fiscal year. |
| Required: |
| Compute the following: |
| 1. | Earnings per share. (Round your answerto 2 decimal places. Omit the "$" sign in yourresponse.) |
| Earnings pershare | $ |
| 2. | Dividend payout ratio. (Round yourintermediate calculations to 2 decimal places and final answerto 1 decimal place.Omit the "%"sign in your response.) |
| Dividend payoutratio | % |
| 3. | Dividend yield ratio.(Round your answer to 1 decimalplace.Omit the "%" sign in yourresponse.) |
| Dividend yieldratio | % |
| 4. | Price-earnings ratio. (Round yourintermediate calculations to 2 decimal places and final answerto 1 decimal place.) |
| Price-earningsratio | |
