Accounting: Ratio analysis.
Not what you're looking for?
1. Joe Fellows is attempting to categorize several items from his company's financial statements so he can determine his working capital. Joe notices the following categories of accounts and amounts: Cash, $3,500; accounts payable, $10,200, accounts receivable, $15,000; sales taxes due the city of Phoenix, $750; sales taxes due the Arizona Department of Revenue, $3,450; inventory $17,500; wages payable, $5,350; taxes payable (federal), $2,750; money market fund, $12,300; and computer, $3,400.
a) List accounts classified as current assets and as current liabilities.
b) Determine the amount of gross working capital.
c) Determine the amount of net working capital.
d) What is Joe's current ratio?
Purchase this Solution
Solution Summary
The problem deals with estimating the working capital and other accounting ratios of a firm.
Education
- B. Sc., University of Nigeria
- M. Sc., London South Bank University
Recent Feedback
- "Thank you."
- "thank you Chidi Ngene.. if you have any APA references would be great"
- "Thank you so much for your help, your explanations were easy to understand and apply!"
- "are you able to highlight the equations used either on the xlsx or a word doc as to how each graph was formed- overall looks fine i just need help understanding this myself"
- "Chidi Ngene, M. Sc. Was extremely helpful as without the help and guidance I would have failed, but with the help I passed. I still have a lot to learn and in need of the guidance to understand and learn more on the subject. I would recommend Chidi Ngene and BrainMass to anyone that are in need of help. Thank you!!"
Purchase this Solution
Free BrainMass Quizzes
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.