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3/14/2021 Question 1 - Wk 1 - Practice: Ratio Analysis [due Sat] - Connect...

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3/14/2021 Question 1 - Wk 1 - Practice: Ratio Analysis [due Sat] - Connect
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Following is the balance sheet of Vernon Company for Year 3:
 
VERNON COMPANY
Balance sheet
Assets
Cash $ 15,300
Marketable securities 8,420
Accounts receivable 13,460
Inventory 11,300
Property and equipment 171,000
Accumulated depreciation (12,700)
Total assets $206,780
Liabilities and Stockholders’ Equity
Accounts payable $ 8,030
Cu
ent notes payable 3,040
Mortgage payable 4,600
Bonds payable 21,120
Common stock 113,500
Retained earnings 56,490
Total liabilities and stockholders’ equity $206,780
 
The average number of common stock shares outstanding during Year 3 was 870
shares. Net income for the year was $15,700.
 
Required
Compute each of the following: (Round your answer to 2 decimal places. Fo
percentages, XXXXXXXXXXshould be entered as 23.45.)
 
$
a. Cu
ent ratio 2.30
. Earnings per share 5.00 per share
c. Quick (acid-test) ratio 23.45.
d. Return on investment 15.70 %
e. Return on equity 171.00 %
f. Debt to equity ratio
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Answered 1 days After Mar 14, 2021

Solution

Kiran answered on Mar 15 2021
150 Votes
Sheet1
    a. Cu
ent Ratio
         = Cu
ent Assets / Cu
ent Liabilities
        Cu
ent Assets
        Cash            15300
        Marketable securities            8420
        Accounts Receivable            13460
        Inventory            11300
         Total Cu
ent Assets            48480
        Cu
ent Liabilities
        Accounts Payable            8030
        Cu
ent Notes payable            3040
         Total Cu
ent Liabilities            11070
        Cu
ent Ratio...
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