Liquidity Ratios Assignment
Calculate the following liquidity ratios for 2016. (If working capital is negative then enter with a negative sign preceding the number or parentheses, e.g. -15,000 or (15,000). Round all answers except working capital to 2 decimal places, e.g. 2.55.)
| a. | Working capital | $ |
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| b. | Current ratio | |
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| c. | Acid-test ratio | |
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| d. | Accounts receivable turnover | |
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2015 Crane Medical Comparative Balance Sheet As of December 31 2016 Assets Current assets Cash $377,000 Accounts receivable, net 1,048,000 Inventory 729,000 Other current assets 381,300 Total current assets 2,535,300 Property, plant, & equipment, net 8,706,535 Total assets $11,241,835 $417,400 776,450 681,100 247,100 2,122,050 8,440,045 $10,562,095 Liabilities and Stockholders' Equity Current liabilities Long-term debt Total liabilities Preferred stock, $5 par value Common stock, $0.25 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $3,181,000 3,702,700 6,883,700 59,000 104,650 4,194,485 4,358,135 $11,241,835 $2,846,100 3,892,650 6,738,750 59,000 103,900 3,660,445 3,823,345 $10,562,095 Crane Medical Comparative Income Statement and Statement of Retained Earning For the Year 2016 2015 Sales revenue (all on account) $ 10,177,200 $9,613,900 Cost of goods sold 5,612,450 5,298,750 Gross profit 4,564,750 4,315,150 Operating expenses 2,840,250 2,634,150 Net operating income 1,724,500 1,681,000 Interest expense 300,300 308,650 Net income before taxes 1,424,200 1,372,350 Income taxes (30%) 427,260 411,705 Net income $996,940 $960,645 Dividends paid Preferred dividends 29,500 29,500 Common dividends 433,400 413,050 Total dividends paid 462,900 442,550 Net income retained 534,040 518,095 Retained earnings, beginning of year 3,660,445 3,142,350 Retained earnings, end of year $4,194,485 $3,660,445 We were unable to transcribe this imageWe were unable to transcribe this imageWe were unable to transcribe this imageWe were unable to transcribe this image. .
