December 31, 2010 (in Thousands of Dollars) Assets Cash $ 3,810 Marketable secur

Question

December 31, 2010 (in Thousands of Dollars)

Assets
Cash                                                        $ 3,810
Marketable securities                              2,700
Accounts receivable                                27,480
Inventories                                               41,295
Plant and equipment                            $64,650
Less Accumulated depreciation        17,100
Net plant and equipment                      47,550
Total assets                                       $122,835

Liabilities and Stockholders

Explanation / Answer

a. Current Assets = Cash + Marketable Securities

+ Accounts Receivable + Inventories

= $3,810 + $2,700 + $27,480+ $41,295 = $75,285,000.

b. Working Capital Investment = Current Assets - Current Liabilities

= Current Assets - (Accounts

Payable + Current Portion of LTD

+ Accrued Wages + Accrued Taxes

+ Other Current Liabilities)

= $75,285 - ($14,582 + $3,000

+ $1,200 + $3,600 + $2,200) = $50,703,000.

c. Current Ratio = Current Assets/Current Liabilities

= ($3,810 + $2,700 + $27,480 + $41,295)/($14,582

+$3,000 + $1,200 + $3,600 + $2,200) = 3.06

d. Return on Stockholders

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.