Question

Based on the information below please calculate the Current ration, Quick (Acid Test) Ration, and Current...

Based on the information below please calculate the Current ration, Quick (Acid Test) Ration, and Current Cash Debt Coverage:

Company Name Symbol Year Industry Current Ratio Quick (Acid Test) Ratio Current Cash Debt Coverage Accounts Receivable Turnover Inventory Turnover Asset Turnover
3M co MMM 2017 Diversified Industry

3M Co

Net Sales $31,657; Net Income $4,869; Non-controlling $11; Net Income - Controlling $4,858; COGS $16,001; Total Assets $37,987

Last Year Total Assets $32,906; Total Liabilities $26,365; Last Year Total Liabilities $22,563; Total equity $11,622; Last Year Total Equity $10,343

Total Current Assets $14,277; Non-Current Assets $23,710; Current Liabilities $7,687; Last Year Current Liabilities $6,219; Non-current Liabilities $18,678

Accounts Receivable Net $4,911; Last Year Accounts Receivable Net $4,392; Cash $3,053; Short-Term Investments $1,076; Current Inventory $4,034

Last Year Inventory $3,385; Net Cash Provided by Operating Activities $6,240; Cash Dividends $(2,803); Preferred Div. $-; Preferred Stockholders' Equity $-;

Last Year Preferred Stockholders' Equity $-; Common Stockholders' Equity $11,622; Last Year Common Stockholders' Equity $10,343;

Market Price (1/2/2018) $235.78; Interest Expense $322; Income Tax Expense $2,679; CapEx $(1,373); Shares Outstanding $595,500,000

Shares Outstanding / 1,000,000 = $595.50; Weighted Average Common Shares Outstanding $597.50; Goodwill $10,513

Please explain how did you get your answers for the calculation of ratios, and for the calculation of turnovers

Homework Answers

Answer #1

Ans:

1. Current ratio= Current Assets/Current Liabilities

Current Assets= 14,277

Current Liabilities= 7,687

ratio= 14,277/7,687

=> 1.86:1

2. Quick Test ratio= Quick Assets/Current Liabilities

Quick Assets= Current Assets-Inventories-prepaid expenses

Quick Assets= 14,277-4,034

=> 10,243

Current Liabilities= 7,687

Ratio= 10,243/7,687

=> 1.33:1

3. Accounts receivable= Net Credit Sales/Average Accounts Receivable

Average Accounts receivable= Opening+ closing/2

=> 4,911+4,392/2

=> $4,651.50

Net Credit Sales= 31,657

Ratio= 31,657/4,651.50

=> 6.80 times

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
SHOW YOUR WORK FOR CALCULATION PROBLEMS Given the following information, calculate: (a) current ratio, (b) quick/acid-test...
SHOW YOUR WORK FOR CALCULATION PROBLEMS Given the following information, calculate: (a) current ratio, (b) quick/acid-test ratio, (c) Total debt or leverage ratio, (d) Return on Assets, (e) Net Margin, (f) Return on Equity, (g) Asset Turnover, (h) Earnings Retention Ratio SUMMARY BALANCE SHEET ASSETS                                   LIABILITIES & SH EQUITY Cash & Equivalents $2,000    Accounts Payable $6,000 Accounts Receivable 7,000    Notes Payable         4,000 Inventory                  5,000     Current Liabilities $10,000 Current Assets      $14,000      Prepaid Expense $2,000         Long-term Debt   $9,000      P, P & E (net)     $20,000        SH Equity           $17,000           Total Assets        $36,000       Total Liab & SH Eq...
Give a short explanation of your conclusions about Barnes and Noble after each category of ratios...
Give a short explanation of your conclusions about Barnes and Noble after each category of ratios (i.e. How liquid is the company? How efficiently is it using its assets? etc.). Liquidity and Efficiency Current Ratio = Current assets / Current liabilities 1.45 Acid-test ratio = Cash + Short-term investments + Current receivables / Current liabilities 0.27 Accounts receivable turnover = Net sales / Average accounts receivable, net 20.52 times Inventory turnover = Cost of goods sold / Average inventory 6.45...
KNOX INSTRUMENTS, INC. BALANCE SHEETS (THOUSANDS OF DOLLARS)                                 &
KNOX INSTRUMENTS, INC. BALANCE SHEETS (THOUSANDS OF DOLLARS)                                                                                                 Dec. 31,           Dec. 31,                                                 Assets                                         1993                1992 Cash                                                                                        $   3,000        $   2,900 Accounts Receivable (Net)                                                        28,000          28,800 Inventory                                                                                   64,000          44,000 Plant Assets                                                                               76,000          67,300 Total Assets                                                                           $171,000       $143,000    Liabilities and Stockholder’s Equity Current Liabilities                                                                   $ 45,200          $ 39,750 10% Bonds Payable                                                                   20,000             14,000    Total Liabilities                                                                    $ 65,200          $ 53,750 Common Stock, $10 Par Value                                              $ 40,000          $ 30,000 Retained...
Comparative financial statements for Heritage Antiquing Services for the fiscal year ending December 31 appear on...
Comparative financial statements for Heritage Antiquing Services for the fiscal year ending December 31 appear on the following page. The company did not issue any new common or preferred stock during the year. A total of 600 thousand shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75. The market value of the company’s common stock at the end...
Sandhill Automotive’s balance sheet at the end of its most recent fiscal year shows the following...
Sandhill Automotive’s balance sheet at the end of its most recent fiscal year shows the following information: Sandhill Automotive Balance Sheet as of March 31, 2017 Assets: Liabilities and Equity: Cash and marketable sec. $38,000 Accounts payable and accruals $163,000 Accounts receivable 166,000 Notes payable 28,000 Inventory 227,000 Total current assets $431,000 Total current liabilities $191,000 Long-term debt 166,000 Total liabilities $357,000 Net plant and equipment 710,000 Common stock 310,000 Goodwill and other assets 99,000 Retained earnings 573,000 Total assets...
Krech Corporation's comparative balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current...
Krech Corporation's comparative balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current assets: Cash and cash equivalents $ 31,000 $ 28,000 Accounts receivable 18,000 20,000 Inventory 58,000 56,000 Prepaid expenses 12,000 10,000 Total current assets 119,000 114,000 Property, plant, and equipment 374,000 354,000 Less accumulated depreciation 190,000 165,000 Net property, plant, and equipment 184,000 189,000 Total assets $ 303,000 $ 303,000 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ 13,000 $ 9,000 Accrued liabilities 52,000...
Comparative financial statements for Heritage Antiquing Services for the fiscal year ending December 31 appear on...
Comparative financial statements for Heritage Antiquing Services for the fiscal year ending December 31 appear on the following page. The company did not issue any new common or preferred stock during the year. A total of 600,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75. The market value of the company’s common stock at the end of...
Perform a trend analysis for the years provided in their statements. Calculate as many of the...
Perform a trend analysis for the years provided in their statements. Calculate as many of the following ratios as possible for each of the years provided in the financial statement. Profitability ratios Profit Margin Return on Assets (Investment) Return on Equity Asset Utilization ratios Receivable Turnover Average Collection Period Inventory Turnover Fixed Asset Turnover Total Asset Turnover Liquidity ratios Current Ratio Quick Ratio Debt Utilization ratios Debt to Total Assets Times Interest Earned Fixed Charge Coverage Breakdown 12/31/2019 12/31/2018 12/31/2017...
Following is the balance sheet of Gibson Company for 2018: GIBSON COMPANY Balance sheet Assets Cash...
Following is the balance sheet of Gibson Company for 2018: GIBSON COMPANY Balance sheet Assets Cash $ 14,550 Marketable securities 7,860 Accounts receivable 12,860 Inventory 10,900 Property and equipment 168,000 Accumulated depreciation (12,900 ) Total assets $ 201,270 Liabilities and Stockholders’ Equity Accounts payable $ 8,090 Current notes payable 3,640 Mortgage payable 4,450 Bonds payable 22,020 Common stock 113,200 Retained earnings 49,870 Total liabilities and stockholders’ equity $ 201,270 The average number of common stock shares outstanding during 2018 was...
Following is the balance sheet of Gibson Company for 2018: GIBSON COMPANY Balance sheet Assets Cash...
Following is the balance sheet of Gibson Company for 2018: GIBSON COMPANY Balance sheet Assets Cash $ 14,550 Marketable securities 7,860 Accounts receivable 12,860 Inventory 10,900 Property and equipment 168,000 Accumulated depreciation (12,900 ) Total assets $ 201,270 Liabilities and Stockholders’ Equity Accounts payable $ 8,090 Current notes payable 3,640 Mortgage payable 4,450 Bonds payable 22,020 Common stock 113,200 Retained earnings 49,870 Total liabilities and stockholders’ equity $ 201,270 The average number of common stock shares outstanding during 2018 was...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT