Chat with AI
Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
Edition 17ISBN: 978-0078025778Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
Edition 17ISBN: 978-0078025778 Exercise 14
Balance Sheet Measures of Liquidity and Credit Risk
A recent balance sheet of Sweet Tooth, Inc., included the following items, among others. (Dollar amounts are stated in thousands.)
The company also reported total assets of $353,816 thousand, total liabilities of $81,630 thousand, and a return on total assets of 18.1 percent.
Instructions
a. Compute Sweet Tooth's ( 1 ) quick assets, ( 2 ) current assets, and ( 3 ) current liabilities.
b. Compute Sweet Tooth's ( 1 ) quick ratio, ( 2 ) current ratio, ( 3 ) working capital, and ( 4 ) debt ratio. (Round to one decimal place.)
c. Discuss the company's liquidity from the viewpoints of (1) short-term creditors, (2) long-term creditors, and (3) stockholders.
A recent balance sheet of Sweet Tooth, Inc., included the following items, among others. (Dollar amounts are stated in thousands.)
The company also reported total assets of $353,816 thousand, total liabilities of $81,630 thousand, and a return on total assets of 18.1 percent.
Instructions
a. Compute Sweet Tooth's ( 1 ) quick assets, ( 2 ) current assets, and ( 3 ) current liabilities.
b. Compute Sweet Tooth's ( 1 ) quick ratio, ( 2 ) current ratio, ( 3 ) working capital, and ( 4 ) debt ratio. (Round to one decimal place.)
c. Discuss the company's liquidity from the viewpoints of (1) short-term creditors, (2) long-term creditors, and (3) stockholders.
Explanation
Verified
Verified
Current assets are part of company's ass...
Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
