Calculate the quick ratio for Los Altos, Ic., for both years, using the financial statements displayed below. Round to nearest hundredth. 2020 2019 Quick Ratio 0 x Did the company's ability to pay its current liabilities improve over the two years? No + Los Altos, Inc. Income Statement For Years Ended December 31, 2020 and 2019 (in millions) 2020 2019 Net sales $10,000 $9,500 Cost of goods sold 5,500 5,200 Gross profit 4,500 4,300 Selling and administrative expenses 2,800 2,700 Income from operations 1,700 1,600 Interest expense 300 250 Income before income taxes 1,400 1,350 Income tax expense 420 400 Net income $980 $950 Los Altos, Inc. Balance Sheet December 31, 2020 and 2019 (in millions) 2020 2019 Assets Current assets Cash and cash equivalents $200 $400 Accounts receivable 900 800 Inventory 500 650 Other current assets 400 250 Total current assets 2,000 2,100 Property, plant, & equipment (net) 2,600 2,500 Other assets 5,700 5,900 Other assets 5,700 5,900 Total assets $10,300 $10,500 Liabilities and Stockholders' Equity Current liabilities $3,000 $2,900 Long-term liabilities 5,000 5,400 Total liabilities 8,000 8,300 Stockholders' equity - common 2,300 2,200 Total Liabilities and Stockholders' Equity $10,300 $10,500

Calculate the quick ratio for Los Altos, Ic., for both years, using the financial statements displayed below. Round to nearest hundredth. 2020 2019 Quick Ratio 0 x Did the company's ability to pay its current liabilities improve over the two years? No + Los Altos, Inc. Income Statement For Years Ended December 31, 2020 and 2019 (in millions) 2020 2019 Net sales $10,000 $9,500 Cost of goods sold 5,500 5,200 Gross profit 4,500 4,300 Selling and administrative expenses 2,800 2,700 Income from operations 1,700 1,600 Interest expense 300 250 Income before income taxes 1,400 1,350 Income tax expense 420 400 Net income $980 $950 Los Altos, Inc. Balance Sheet December 31, 2020 and 2019 (in millions) 2020 2019 Assets Current assets Cash and cash equivalents $200 $400 Accounts receivable 900 800 Inventory 500 650 Other current assets 400 250 Total current assets 2,000 2,100 Property, plant, & equipment (net) 2,600 2,500 Other assets 5,700 5,900 Other assets 5,700 5,900 Total assets $10,300 $10,500 Liabilities and Stockholders' Equity Current liabilities $3,000 $2,900 Long-term liabilities 5,000 5,400 Total liabilities 8,000 8,300 Stockholders' equity - common 2,300 2,200 Total Liabilities and Stockholders' Equity $10,300 $10,500

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Description: Calculate the quick ratio for Los Altos, Ic., for both years, using the financial statements displayed below. Round to nearest hundredth.20202019Quick Ratio0 xDid the company's ability to pay its current liabilities improve over the two years? No +L

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter16: Financial Planning And Forecasting

Section: Chapter Questions

Problem 8P: LONG-TERM FINANCING NEEDED At year-end 2019, total assets for Arrington Inc. were 1.8 million and...

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LONG-TERM FINANCING NEEDED At year-end 2019, total assets for Arrington Inc. were 1.8 million and accounts payable were 450,000. Sales, which in 2019 were 3.0 million, are expected to increase by 25% in 2020. Total assets and accounts payable are proportional to sales, and that relationship will be maintained; that is, they will grow at the same rate as sales. Arrington typically uses no current liabilities other than accounts payable. Common stock amounted to 500,000 in 2019, and retained earnings were 475,000. Arrington plans to sell new common stock in the amount of 130,000. The firms profit margin on sates is 5%; 35% of earnings will be retained. a. What were Arringtons total liabilities in 2019? b. How much new long-term debt financing will be needed in 2020? (Hint: AFN - New stock = New long-term debt.)
Calculate the quick ratio for Los Altos, Ic., for both years, using the financial statements displayed below. Round to nearest hundredth. 2020 2019 Quick Ratio Did the company's ability to pay its current liabilities improve over the two years? No + Los Altos, Inc. Income Statement For Years Ended December 31, 2020 and 2019 (in millions) 2020 2019 Net sales $15,000 $14,250 Cost of goods sold 7,425 7,020 Gross profit 7,575 7,230 Selling and administrative expenses 3,780 3,645 Income from operations 3,795 3,585 Interest expense 405 338 Income before income taxes 3,390 3,247 Income tax expense 567 540 Net income $2 823 $2 707
Calculate the current ratio for Los Altos, Inc., for both years, using the financial statements displayed below. Round to nearest hundredth. 2020 2019 Current ratio 0.47 x 0.5 x Did the company's ability to pay its current liabilities improve over the two years? No + Los Altos, Inc. Income Statement For Years Ended December 31, 2020 and 2019 (in millions) 2020 2019 Net sales $10,000 $9,500 Cost of goods sold 5,500 5,200 Gross profit 4,500 4,300 Selling and administrative expenses 2,800 2,700 Income from operations 1,700 1,600 Interest expense 300 250 Income before income taxes 1,400 1,350 Income tax expense 420 400 Net income $980 $950 Los Altos, Inc. Balance Sheet December 31, 2020 and 2019 (in millions) 2020 2019 Assets Current assets Cash and cash equivalents $200 $400 Accounts receivable 900 800 Inventory 500 650 Other current assets 400 250 Total current assets 2,000 2,100 Property, plant, & equipment (net) 2,600 2,500 Other assets 5,700 5,900
Quick Ratio Calculate the quick ratio for Los Altos, Inc., for both years, using the financial statements displayed below. Round to nearest hundredth. 2020 2019 Quick Ratio Did the company’s ability to pay its current liabilities improve over the two years? yes or no? Los Altos, Inc. Income Statement For Years Ended December 31, 2020 and 2019 (in millions) 2020 2019 Net sales $13,000 $12,350 Cost of goods sold 6,600 6,240 Gross profit 6,400 6,110 Selling and administrative expenses 3,360 3,240 Income from operations 3,040 2,870 Interest expense 360 300 Income before income taxes 2,680 2,570 Income tax expense 504 480 Net income $2,176 $2,090 Los Altos, Inc. Balance Sheet December 31, 2020 and 2019 (in millions) 2020 2019 Assets Current assets Cash and cash equivalents $240 $480 Accounts receivable 1,080 960 Inventory 600 780 Other current assets 480 300 Total current assets 2,400…
Calculate the quick ratio for Los Altos, Inc., for both years, using the financial statements displayed below. Round to nearest hundredth. 2020 2019 Quick Ratio Did the company's ability to pay its current liabilities improve over the two years? Los Altos, Inc. Income Statement For Years Ended December 31, 2020 and 2019 (in millions) 2020 2019 Net sales $10,000 $9,500 Cost of goods sold 5,500 5,200 Gross profit 4,500 4,300 Selling and administrative expenses 2,800 2,700 Income from operations 1,700 1,600 Interest expense 300 250 Income before income taxes 1,400 1,350 Income tax expense 420 400 Net income $980 $950 Los Altos, Inc. Balance Sheet December 31, 2020 and 2019 (in millions) 2020 2019 Assets Current assets Cash and cash equivalents $200 $400 Accounts receivable 900 800 Inventory 500 650 Other current assets 400 250 Total current assets 2,000 2,100 Property. plant, & equipment (net) 2,600 2,500 Other assets 5,700 5,900 Total assets $10,300 $10,500 Liabilities and Stockholders'…
Quick Ratio Calculate the quick ratio for Los Altos, Ic., for both years, using the financial statements displayed below. Round to nearest hundredth. 2020 2019 Quick Ratio Did the company's ability to pay its current liabilities improve over the two years? Los Altos, Inc. Income Statement For Years Ended December 31, 2020 and 2019 (in millions) 2020 2019 Net sales $13,000 $12,350 Cost of goods sold 6,600 6,240 Gross profit 6,400 6,110 Selling and administrative expenses 3,360 3,240 Income from operations 3,040 2,870 Interest expense 360 300 Income before income taxes 2,680 2,570 Income tax expense 504 480 Net income $2,176 $2,090 Los Altos, Inc. Balance Sheet December 31, 2020 and 2019 (in millions) 2020 2019 Assets Current assets Cash and cash equivalents $240 $480 Accounts receivable 1,080 960 Inventory 600 780 Other current assets 480 300 Total current assets 2,400 2,520 Property, plant, & equipment (net) 3,120 3,000 Other assets 6,840 7,080 Total assets $12,360 $12,600 Liabilities…
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Quick Ratio Calculate the quick ratio for Los Altos, Inc., for both years, using the financial statements displayed below. Round to nearest hundredth. 2020 2019 Quick Ratio Did the company’s ability to pay its current liabilities improve over the two years? Answer Los Altos, Inc. Income Statement For Years Ended December 31, 2020 and 2019 (in millions) 2020 2019 Net sales $5,500 $5,225 Cost of goods sold 2,750 2,600 Gross profit 2,750 2,625 Selling and administrative expenses 1,400 1,350 Income from operations 1,350 1,275 Interest expense 150 125 Income before income taxes 1,200 1,150 Income tax expense 210 200 Net income $990 $950 Los Altos, Inc. Balance Sheet December 31, 2020 and 2019 (in millions) 2020 2019 Assets Current assets Cash and cash equivalents $100 $200 Accounts receivable 450 400 Inventory 250 325 Other current assets 200 125 Total current assets 1,000 1,050…
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