The 2014 entry for accounts payable is $______. ( i already know the answer is 4
ID: 2799138 • Letter: T
Question
The 2014 entry for accounts payable is $______. ( i already know the answer is 40,5000 i need to know how to do it)
The operating profit margin in 2014 was ______%, ( i already know the answer is 30.00 i need to know how to do it)
The quick ratio in 2014 was ______. ( i already know the answer is 1.53 i need to know how to do it)
USE THE FINANCIAL DATA BELOW TO ANSWER QUESTIONS 2-8 2014 2013 16,200 48,60044,500 24,30016,200 81,00098,000 64,80081,000 56,70064,800 Category Accounts payable Accounts receivable Accruals Cash Common Stock COGS 0 4,050 Depreciation expense Gross fixed assets Interest expense 121,500145,800 8,100 40,50060,800 81,00089,100 101,500121,500 44,80037,200 Operating expenses (excl. depr.) 12,10016,200 40,50060,800 105,300121,500 6,480 6,400 Inventories Long-term debt Net fixed assets Notes payable Retained earnings Sales Taxes 4,860Explanation / Answer
A. Accounts payable for 2014 can be found by reducing all available total liabilities from total assets.
Here the total assets = AR + cash + NFA + Inventories
= 44500 + 98000 + 60800 + 121500 = 324,800
Total liabilities equals = Common stock + retained earnings + LTD + notes payable + accruals
= 81000 + 60800 + 89100 + 37200 + 16200 = 284,300
The difference of $40,500 we can conclude is the missing Accounts Payable
B. Operating profit margin
To calculate this we need the operating profit
Operating profit = Sales - COGS - Operating expenses - Depreciation
= 121500-64800-16200-4050 = 36,450
Now operating profit margin can be calculated as below:
Operating profit/Sales * 100
= 36450/121500 * 100 = 30%
C. The quick ratio can be calculated by dividing current assets(excluding inventory) by current liabilities
Cash + AR / AP + accruals + notes payable
= 98000 + 44500 / 40500 + 16200 + 37200
= 1.52 times
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