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Financial & Managerial Accounting problem.

A condensed balance sheet for Bradford Corporation Prepared at the end of the year appears as follows:
Assets Liabilities & Stockholders' Equity
Cash........................................... $ 95,000 Notes payable (due in
Accounts receivable............... 155,000 6 months)........................... $ 40,000
Inventory................................. 270,000 Accounts payable.................. 110,000
Prepaid expenses................... 60,000 Long-term liabilities............. 360,000
Plant & equipment (net)....... 570,000 Capital stock, $ 5 par............ 300,000
Other assets............................. 90,000 Retained earnings................. 430,000
Total.......................................... $ 1,240,000 Total........................................ $ 1,240,000

During the year the company earned a gross profit of $ 1,116,000 on sales of $ 2,950,000. Accounts receivable, inventory and plant assets remained almost constant in amount throughout the year.
Compute the following:
a. Current ratio.
b. Quick ratio.
c. Working capital.
d. Debt ratio.
e. Accounts receivable turnover (all sales were on credit).
f. Inventory turnover.
g. Book value per share of capital stock.

Please see attached file for the formatted chart.

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Financial & Managerial Accounting problem
A condensed balance sheet for Bradford Corporation Prepared at the end of the year appears as follows:
Assets Liabilities & Stockholders' Equity
Cash........................................... $ 95,000 Notes payable (due in
Accounts receivable............... 155,000 6 months)........................... $ 40,000
Inventory................................. 270,000 Accounts payable.................. 110,000
Prepaid expenses................... 60,000 Long-term ...

Solution Summary

Solution helps in estimating Accounts receivable turnover and other ratios. Includes Excel file.

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