Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
5th Edition
ISBN: 9780134078939
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 15, Problem 15.8SE
Shine's Companies, a home improvement store chain, reported the following summarized figures:
Shine's has 100,000 common shares outstanding during 2016.
Measuring ability to pay liabilities
Requirements
- 1. Compute the debt ratio and the debt to equity ratio at May 31, 2016, for Shine’s Companies.
- 2. Is Shine’s ability to pay its liabilities strong or weak? Explain your reasoning.
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Win's Companies, a home improvement store chain, reported the following summanzed figures
E (Click the icon to view the income statement.)
E (Click the icon to view the balance sheets.)
Win's has 20,000 common shares outstanding during 2018.
Read the requirements
Requirement 1. Compute Win's Companies' current ratio at May 31, 2018 and 2017
Begin by selecting the formula to calculate Win's Companies' current ratio. Then enter the amounts and calcu ale the current ratio for 2018 and then 2017. (Round your answers to two decimal places, X.XX.)
Current ratio
(i Balance Sheets
Income Statement
Win's Companies
Win's Companies
Balance Sheet
Income Statement
May 31, 2018 and 2017
Years Ended May 31, 2018 and 2017
Assets
Liabilities
2018
2017
2018
2017
2018
2017
Net Sales Revenue
24
57 200 $
39,800
Cash
$.
2.300 $
1300 Total Current Liabilities
22,000 $
12,900
Cost of Goods Sold
22.500
25,500
12,200
11,300
Short-term Invesiments
29 000
13.000 Long-term Liabilities
Interest Expense
500
320…
High's Companies
Balance Sheet
May 31, 2018 and 2017
Assets
Liabilities
2018
2017
2018
2017
Cash
24
2,000 S
1,600 Total Current Liabilities
23.000 S
13,600
13,000
Short-term Investments
24,000
14,000 Long-term Liabilities
12,400
Accounts Receivable
7.200
5.600 Total Liabilities
36,600
25.400
Merchandise nventory
7.100
7 200
Stockholders' Equity
Other Current Assets
11,000
2400
Common Stock
9,000
9.000
Total Current Assets
51,300
36 700
19,400
30,800 Retained Eanings
23000
All Other Assets
31,000
45,700
Total Equity
53,800
28,400
Total Assets
82,300 $
Total Liabilities and Equity
82,300 $
53,800
The below tables shows Dynamic Mattress’s year-end 2016 and 2018 balance sheets, and its income statement for 2017.
Dynamic MattressYear-End Balance Sheet for 2016(figures in $ millions)
Assets
Liabilities and Shareholders’ Equity
Current Assets:
Current Liabilities:
Cash
$
22
Bank loans
$
22
Marketable securities
11
Accounts payable
80
Accounts receivable
111
Inventory
155
Total current assets
$
299
Total current liabilities
$
102
Fixed assets:
Gross investment
$
251
Long-term debt
26
Less depreciation
71
Net worth (equity and retained earnings)
351
Net fixed assets
$
180
Total assets
$
479
Total liabilities and net worth
$
479
Dynamic MattressYear-End Balance Sheet for 2017(figures in $ millions)
Assets
Liabilities and Shareholders’ Equity
Current Assets:
Current Liabilities:
Cash
$
32.0
Debt due within a year (bank…
Chapter 15 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Ch. 15 - What part of the Libertys annual report is written...Ch. 15 - Horizontal analysis of Liberty's balance sheet for...Ch. 15 - Vertical analysis of Liberty's balance sheet for...Ch. 15 - Which statement best describes Liberty's acid-test...Ch. 15 - Liberty's inventory turnover during 2017 was...Ch. 15 - Prob. 6QCCh. 15 - Prob. 7QCCh. 15 - Liberty's rate of return on common stockholders'...Ch. 15 - The company has 2,500 shares of common stock...Ch. 15 - Prob. 10AQC
Ch. 15 - What ate the three main ways to analyze financial...Ch. 15 - What is an annual report? Briefly describe the key...Ch. 15 - Prob. 3RQCh. 15 - What is trend analysis, and how does it differ...Ch. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Briefly describe the ratios that can be used to...Ch. 15 - Prob. 9RQCh. 15 - Briefly describe the ratios that can be used to...Ch. 15 - Briefly describe the ratios that can be used to...Ch. 15 - Prob. 12RQCh. 15 - Prob. 13RQCh. 15 - Prob. 14RQCh. 15 - Prob. 15RQCh. 15 - Prob. 15.1SECh. 15 - Performing horizontal analysis McDonald Corp....Ch. 15 - Calculating trend analysis Variline Corp. reported...Ch. 15 - Performing vertical analysis Hoosier Optical...Ch. 15 - Preparing common-size income statement Data for...Ch. 15 - Shine's Companies, a home improvement store chain,...Ch. 15 - Shine's Companies, a home improvement store chain,...Ch. 15 - Shine's Companies, a home improvement store chain,...Ch. 15 - Prob. 15.9SECh. 15 - Prob. 15.10SECh. 15 - Prob. 15.11SECh. 15 - Using ratios to reconstruct a balance sheet...Ch. 15 - Prob. 15.13SECh. 15 - Prob. 15.14SECh. 15 - Prob. 15.15ECh. 15 - Computing trend analysis Grand Oaks Realty's net...Ch. 15 - Prob. 15.17ECh. 15 - Prob. 15.18ECh. 15 - Prob. 15.19ECh. 15 - Prob. 15.20ECh. 15 - Analyzing the ability to pay liabilities Big Bend...Ch. 15 - Analyzing profitability Varsity, Inc.s comparative...Ch. 15 - Prob. 15.23ECh. 15 - Using ratios to reconstruct a balance sheet The...Ch. 15 - Prob. 15.25ECh. 15 - Computing earnings per share Falconi Academy...Ch. 15 - Prob. 15.27APCh. 15 - Prob. 15.28APCh. 15 - Prob. 15.29APCh. 15 - Prob. 15.30APCh. 15 - Using ratios to evaluate a stock investment...Ch. 15 - Prob. 15.32APCh. 15 - Preparing an income statement The following...Ch. 15 - Computing trend analysis and return on common...Ch. 15 - Prob. 15.35BPCh. 15 - Prob. 15.36BPCh. 15 - Determining the effects of business transactions...Ch. 15 - Prob. 15.38BPCh. 15 - Prob. 15.39BPCh. 15 - Prob. 15.40BPCh. 15 - Prob. 15.41CPCh. 15 - Lance Berkman is the controller of Saturn, a dance...Ch. 15 - Prob. 15.1CTEI
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