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3 years ago

Sprague Company has been operating for several years, and on December 31, 207, presented the following balance sheet.

Business

1 answer:

Firdavs [7]3 years ago

4 0

Answer:

A. Current Ratio= 2.63

B. Acid-Test Ratio = 1.44

C. Debt to Assets Ratio 51.16%

D. Return on assets 5.81%

Explanation:

a. Calculation forn Current Ratio

First step is to Calculate the Total Current Assets

Cash 40,000

Receivables 75,000

Inventory 95,000

Total Current Assets 210,000

Now let calculate Current Ratio

Current Ratio= Current Assets / Current Liabilities

Current Ratio=210,000/80,000

Current Ratio= 2.63

b Calculation for Acid-Test Ratio

Acid-Test Ratio=(Current Assets - Inventory) / Current Liabilities

Acid-Test Ratio =(210,000-95,000)/80,000

Acid-Test Ratio =115,000/80,000

Acid-Test Ratio = 1.44

c. Calculation for Debt to Assets Ratio

First step is to calculate total Debt

Accounts payable 80,000

Mortgage payable 140,000

Total Debt 220,000

Now let calculate the Debt to Assets Ratio

Debt to Assets Ratio= Total Debt/ Total Assets

Debt to Assets Ratio=220,000/430,000

Debt to Assets Ratio= 51.16%

d. Calculation for Return on assets

Return on assets= Net Income/ Average Assets

Return on assets=25,000/430,000

Return on assets 5.81%

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3 years ago

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Answer:

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Explanation:

Committee reports

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3 years ago

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2 years ago

Kyle and Alyssa paid $1,000 and $4,000 in qualifying expenses for their two daughters Jane and Jill, respectively, to attend the

denis-greek [22]

Answer: $3,500

Explanation:

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The credit offered stands at a 100% of the first $2,000 paid per student. Afterwards this drops to 25% for the next $2,000.

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That means that Kyle and Alyssa qualified for 100% of this credit.

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3 years ago

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maxonik [38]

Answer:

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