Galaxy United, Inc. 2009 Income Statement ($ in millions) Net sales $8,450 Less:
ID: 2674070 • Letter: G
Question
Galaxy United, Inc.2009 Income Statement
($ in millions)
Net sales $8,450
Less: Cost of goods sold 7,200
Less: Depreciation 420
Earnings before interest and taxes 830
Less: Interest paid 79
Taxable Income 751
Less: Taxes 263
Net income $ 488
Galaxy United, Inc.
2008 and 2009 Balance Sheets
($ in millions)
2008 2009 2008 2009
Cash $ 120 $ 150 Accounts payable $1,120 $1,140
Accounts rec. 940 780 Long-term debt 950 1,303
Inventory 1,490 1,530 Common stock $3,120 $2,920
Sub-total $2,550 $2,460 Retained earnings 520 707
Net fixed assets 3,160 3,610
Total assets $5,710 $6,070 Total liab. & equity $5,710 $6,070
What is the quick ratio for 2009?
Explanation / Answer
Quick Ratio = (current assets - inventory)/current liabilities In this case: Current assets = cash + accounts receivable + inventory Current liabilities = accounts payable Quick ratio in 2009 = (cash + accounts receivable)/accounts payable = (150 + 780)/1140 = 0.81578947 Please rate my answer and appreciate my time spent helping you :) thanks in advance!
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