Walker Corporation has provided the following financial data: The company's net operating income for Year 2 was $63,615 and its interest expense was $15,000.
Required:
a.What is the company's working capital at the end of Year 2?
b.What is the company's current ratio at the end of Year 2?
c.What is the company's acid-test (quick)ratio at the end of Year 2?
d.What is the company's times interest earned for Year 2?
e.What is the company's debt-to-equity ratio at the end of Year 2?
f.What is the company's equity multiplier at the end of Year 2?

Question

Walker Corporation has provided the following financial data:  The company's net operating income for Year 2 was $63,615 and its interest expense was $15,000.
Required:
a.What is the company's working capital at the end of Year 2?
b.What is the company's current ratio at the end of Year 2?
c.What is the company's acid-test (quick)ratio at the end of Year 2?
d.What is the company's times interest earned for Year 2?
e.What is the company's debt-to-equity ratio at the end of Year 2?
f.What is the company's equity multiplier at the end of Year 2?

Quizplus · Accepted Answer

The Answer of Walker Corporation has provided the following financial data:  The company's net operating income for Year 2 was $63,615 and its interest expense was $15,000.
Required:
a.What is the company's working capital at the end of Year 2?
b.What is the company's current ratio at the end of Year 2?
c.What is the company's acid-test (quick)ratio at the end of Year 2?
d.What is the company's times interest earned for Year 2?
e.What is the company's debt-to-equity ratio at the end of Year 2?
f.What is the company's equity multiplier at the end of Year 2?

Walker Corporation Has Provided the Following Financial Data: the Company's