Question

A company has $614 in inventory, $1,903 in net fixed assets, $288 in accounts receivable, $133 in cash, and $338 in accounts payable. What are the company's total current assets?

A firm has $816 in inventory, $1,640 in fixed assets, $616 in accounts receivable, $372 in net working capital, and $207 in cash. What is the amount of current liabilities?

You are examining a company's balance sheet and find that it has total assets of $20,134, a cash balance of $2,046, inventory of $4,721, current liabilities of $5,445 and accounts receivable of $2,571. What is the company's net working capital?

se the following information to answer this question.

Bayside, Inc. 2017 Income Statement ($ in thousands)
Net sales	$	5,790
Cost of goods sold		4,150
Depreciation		325
Earnings before interest and taxes	$	1,315
Interest paid		27
Taxable income	$	1,288
Taxes		386
Net income	$	902

  

Bayside, Inc. 2016 and 2017 Balance Sheets ($ in thousands)
		2016			2017				2016			2017
Cash	$	80		$	185		Accounts payable	$	1,385		$	1,335
Accounts rec.		920			760		Long-term debt		740			540
Inventory		1,565			1,970		Common stock		3,190			3,210
Total	$	2,565		$	2,915		Retained earnings		810			1,060
Net fixed assets		3,560			3,230
Total assets	$	6,125		$	6,145		Total liab. & equity	$	6,125		$	6,145

What is the return on equity for 2017?

Use the following information to answer this question.

Windswept, Inc. 2017 Income Statement ($ in millions)
Net sales	$	9,000
Cost of goods sold		7,450
Depreciation		360
Earnings before interest and taxes	$	1,190
Interest paid		93
Taxable income	$	1,097
Taxes		384
Net income	$	713

  

Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions)
		2016			2017				2016			2017
Cash	$	170		$	200		Accounts payable	$	1,270		$	1,492
Accounts rec.		980			880		Long-term debt		1,050			1,283
Inventory		1,580			1,605		Common stock		3,270			2,930
Total	$	2,730		$	2,685		Retained earnings		490			740
Net fixed assets		3,350			3,760
Total assets	$	6,080		$	6,445		Total liab. & equity	$	6,080		$	6,445

What is the cash coverage ratio for 2017?   

Use the following information to answer this question.

Windswept, Inc. 2017 Income Statement ($ in millions)
Net sales	$	10,090
Cost of goods sold		8,160
Depreciation		505
Earnings before interest and taxes	$	1,425
Interest paid		120
Taxable income	$	1,305
Taxes		457
Net income	$	848

  

Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions)
	2016			2017				2016			2017
Cash	$	310		$	340		Accounts payable	$	1,690		$	1,585
Accounts rec.		1,160			1,060		Long-term debt		1,180			1,380
Inventory		2,050			1,815		Common stock		3,500			3,490
Total	$	3,520		$	3,215		Retained earnings		720			970
Net fixed assets		3,570			4,210
Total assets	$	7,090		$	7,425		Total liab. & equity	$	7,090		$	7,425

What is the quick ratio for 2017?

Which one of the following is a source of cash?

Multiple Choice

• Increase in accounts receivable

• Decrease in common stock

• Increase in fixed assets

• Decrease in accounts payable

• Decrease in inventory

Answer 1

Answer to Question 1.
Total Current Assets = Cash + Accounts Receivable + Inventory
Total Current Assets = $133 + $288 + $614
Total Current Assets = $1,035

Answer to Question 2.
Total Current Assets = Cash + Accounts Receivable + Inventory
Total Current Assets = $207 + $616 + $816
Total Current Assets = $1,639

Net Working Capital = Total Current Assets – Total Current Liabilities
$372 = $1,639 - Total Current Liabilities
Total Current Liabilities = $1,267

Answer to Question 3.
Total Current Assets = Cash + Accounts Receivable + Inventory
Total Current Assets = $2,046 + $2,571 + $4,721
Total Current Assets = $9,338

Total Current Liabilities = $5,445

Net Working Capital = Total Current Assets – Total Current Liabilities
Net Working Capital = $9,338 - $5,445
Net Working Capital = $3,893