a. In 2004, The Coca-Cola Company reported current assets of$12,094 million, tot
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a. In 2004, The Coca-Cola Company reported current assets of$12,094 million, total assets of $31,327 million, currentliabilities of $10,971 million, and total liabilities of $15,392million. What was their current ratio for 2004? The following is a partial list of account balances from thebooks of Probst Enterprise at the end of 2009: AccountsPayable $20,500 AccountsReceivable 12,300 Accrued VacationLiability 1,200 Cash 6,500 DeferredRevenue 1,300 Income TaxesPayable 1,900 Notes Payable (due in 2years) 10,000 Based solely upon thesebalances, the amount of current liabilities appearing onProbst’s 2009 year-end balance sheet should be ? c. Landry’s Restaurants reported cost of goods sold of$322 million and accounts payable of $83 million for 2003. In2002, cost of goods sold was $258 million and accounts payable was$72 million. What was Landry's accounts payable turnoverratio in 2003? d. On September 1, 2006, Donna Equipment signed a one-year, 8%interest-bearing note payable for $50,000. Assuming that Donnamaintains its books on a calendar year basis, the amount ofinterest expense that should be reported in the 2007 incomestatement for this note (rounded to the nearest dollar) wouldbe a. In 2004, The Coca-Cola Company reported current assets of$12,094 million, total assets of $31,327 million, currentliabilities of $10,971 million, and total liabilities of $15,392million. What was their current ratio for 2004? The following is a partial list of account balances from thebooks of Probst Enterprise at the end of 2009: AccountsPayable $20,500 AccountsReceivable 12,300 Accrued VacationLiability 1,200 Cash 6,500 DeferredRevenue 1,300 Income TaxesPayable 1,900 Notes Payable (due in 2years) 10,000 AccountsPayable $20,500 AccountsReceivable 12,300 Accrued VacationLiability 1,200 Cash 6,500 DeferredRevenue 1,300 Income TaxesPayable 1,900 Notes Payable (due in 2years) 10,000 Based solely upon thesebalances, the amount of current liabilities appearing onProbst’s 2009 year-end balance sheet should be ? c. Landry’s Restaurants reported cost of goods sold of$322 million and accounts payable of $83 million for 2003. In2002, cost of goods sold was $258 million and accounts payable was$72 million. What was Landry's accounts payable turnoverratio in 2003? d. On September 1, 2006, Donna Equipment signed a one-year, 8%interest-bearing note payable for $50,000. Assuming that Donnamaintains its books on a calendar year basis, the amount ofinterest expense that should be reported in the 2007 incomestatement for this note (rounded to the nearest dollar) wouldbe c. Landry’s Restaurants reported cost of goods sold of$322 million and accounts payable of $83 million for 2003. In2002, cost of goods sold was $258 million and accounts payable was$72 million. What was Landry's accounts payable turnoverratio in 2003? d. On September 1, 2006, Donna Equipment signed a one-year, 8%interest-bearing note payable for $50,000. Assuming that Donnamaintains its books on a calendar year basis, the amount ofinterest expense that should be reported in the 2007 incomestatement for this note (rounded to the nearest dollar) wouldbe AccountsPayable $20,500 AccountsReceivable 12,300 Accrued VacationLiability 1,200 Cash 6,500 DeferredRevenue 1,300 Income TaxesPayable 1,900 Notes Payable (due in 2years) 10,000Explanation / Answer
a. Current ratio2004 Current assets / Currentliabilities = $12094 million / $10971 million = 1.1 b. Current liabilities: Accounts Payable $20,500 Accrued vacation liability $1,200 Income tax payable $1,900 Deffered revenue $1,300 Total current liability $24,900 c. Accounts payable = Purchases / Average accounts payable Turnover ratio 2003 Assumed cost of goods sold is equal topurchases = $258 million / ($72 + $83 million) = $258 / $155 = 1.66 times d. Interest expense = $50000 X 8% X 4/12 4 months, 2007 $1,333
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