Question

Ivanhoe Company provides you with the following balance sheet information as of December 31, 2017.

Current assets		$12,100		Current liabilities		$13,700
Long-term assets		29,300		Long-term liabilities		12,900
Total assets		$41,400		Stockholders’ equity		14,800
				Total liabilities and stockholders’ equity		$41,400

In addition, Ivanhoe reported net income for 2017 of $19,000, income tax expense of $3,400, and interest expense of $1,600.

Compute the current ratio and working capital for Ivanhoe for 2017. (Round current ratio to 2 decimal places, e.g. 2.75. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Current ratio		enter the ratio rounded to 2 decimal places	:1
Working capital		$enter a dollar amount

  

  

Assume that at the end of 2017, Ivanhoe used $3,400 cash to pay off $3,400 of accounts payable. How would the current ratio and working capital have changed? (Round current ratio to 2 decimal places, e.g. 2.75. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Current ratio		enter the ratio rounded to 2 decimal places	:1
Working capital		$enter a dollar amount

  

  

Compute the debt to assets ratio and the times interest earned for Ivanhoe for 2017. (Round answers to 2 decimal places, e.g. 2.75.)

Debt to assets ratio		enter the ratio rounded to 2 decimal places	:1
Times interest earned ratio		enter the ratio rounded to 2 decimal places	times

  

Answer 1