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
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 15, Problem 4QC
Which statement best describes Liberty's acid-test ratio for 2017?
a. Greater than 1
b. Equal to 1
c. Less than 1
d. None of the above
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
1.The acid test ratio in year 2021 is as follows:
A. 1,72:1B. 2,61:1C. 1,94: 1D. 1,26:1E. 1.31:1
Liberty Corporation reported the following financial statements:
Which statement best describes Liberty’s acid-test ratio for 2019?
a. Greater than 1
b. Equal to 1
c. Less than 1
d. None of the above
4. What is the net effect of the above errors in the 2021 net income? (If understated, put a negative (-) sign before the numerical value)
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
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Compare your printout from requirement 2 with your printout from requirement 4. From these two sets of ratios, what conclusions can be drawn concerning changes from 2012 and 2013?arrow_forwardMay I ask for an explanation and solution to the question for a better understanding. Thank you! 13. What is the Sculler's acid test ratio at December 31, 2021? a. 0.672 to 1 b. 0.756 to 1 c. 1.000 to 1 d. 1.767 to 1arrow_forwardA. Calculate the current ratio for Pearson and litt for 2019. B.explain the results of the current test ratio. Include the minimum ratio recommended for the ratio in your answerarrow_forward
- A-1. What is the NET EFFECT of the errors in PERFECT’s 2020 net income? (After your numerical figure, immediately write OVER if overstated or UNDER if understated, example: XXX-OVER or XXX-UNDER)arrow_forwardMay I ask for an explanation and solution to the question for a better understanding. Thank you! At December 31, 2011, Rey's current ratio was: a. 1.50 to 1 b. 1.75 to 1 c. 2.06 to 1 d. 3.10 to 1arrow_forwardSet out below are the financial statements for KLEE Inc. Limited: Profit and Loss Accounts ($) 2015 (S000's) 2016 (5000's) Sales 285 200 Profit before interest and tax 92 84 Interest 10 10 Profit on ordinary activities before taxation 82 74 Тахабоn 32 29 50 Profit on ordinary activities after taxation Dividends Retained profit 15 15 35 30 Balance Sheets ($) Fixed Assets Fixed Assets 24 58 Current Assets Stock 25 20 Debtors Cash 21 20 3 49 48 Current Liabilities Trade Creditors 18 18 Тахafon payable Proposed dividend 11 8 15 15 42 41 Net Current Assets 7 5 31 61 Creditors: Amounts falling due after more than one year 10% Debentures 10 10 Total Net Assets 21 51 Shareholders' Funds Share Capital Profit and loss account 5 5 18 48 21 51arrow_forward
- 1.Calculate the break‐even point for Pearson & Litt for 2019 and 2020. 2. Compare the results of the 2019 and 2020 break‐even point and explain why there might be a difference. 3. The current ratio reflects the relationship between the value of the current assets and the extent of the current liabilities of a business. 4. Calculate the current ratio for Pearson & Litt for 2019. 5. Explain the results of the current‐test ratio. HINT: Include the minimum ratio recommended for the ratio in your answer. 6. The gross profit margin indicates how profitable sales have been. 7. Calculate the gross profit margin for Pearson & Litt for 2020. 8. Explain the results of the gross profit margin calculation. 9. Financial planning forms an integral part of the strategic planning of a firm. 10. Differentiate between traditional budgeting and zero‐base budgeting. 11. Recommend one of these budgeting methods to Pearson & Litt and provide reasons for your recommendation.arrow_forwardMay I ask for a solution and explanation to the problem for a better understanding. Thank you! 2. Using Carrot Corp data. What is the Acid-test ratio for years 1 and 2 respectively? a. 3; 2.80 b. 2.80; 3 c. 2.6; 4 d. 4; 2.6arrow_forwardMay I ask for an explanation and solution to the question for a better understanding. Thank you! 12. What is Sculler's current ratio at December 31, 2021? a. 2.220 to 1 b. 2.286 to 1 c. 3.250 to 1 d. 3.420 to 1arrow_forward
- Compute trend percents for the following accounts using 2015 as the base year. For each of the three accounts, state whether the situation as revealed by the trend percents appears to be favorable or unfavorable.arrow_forwardREQUIRED Use the information given below to calculate the following ratios for 2019. (Where applicable, round off answers to two decimal places.) Also provide a brief interpretation of each answer. The comparative figures for 2018 are given in brackets. 4.1 Gross margin (2018: 60.53%) (2018: 5.02 times) (2018: 1.05:1) (2018: 60.38%) (2018: 36.45%) (2018: 29.56 days) (2018: 108.42 cents) 4.2 4.3 4.4 4.5 4.6 4.7 Inventory turnover Acid test ratio Debt to equity Return on equity Debtors collection period Earnings per share INFORMATION FIAMMA LIMITED EXTRACT OF STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2019 Sales (all credit) Operating expenses Operating profit Company tax Note: 1. The goods were sold at cost plus 90%. 2. The tax rate of the company is 30%. R 1 668 200 (486 000) 308 000 (86 400)arrow_forwardInstructions: I. Resolve the ratios listed on table a for each year (2020 & 2021): a. For each ratio includes the formula with math computes (2020 & 2021) b. . Fill M&G Industries Ratio Analysis Table A. (2020 & 2021) II. Perform the following Analysis: a. Explain each ratio results for 2021 only. b. Compare each ratio performance with the previous year results (compare 2021 results with 2020 results) c. Compare each Ratio results for 2021 with their respective Industry average. III. Base on the previous results, evaluate and explain the Company financial position using the following questions: 1. How liquid is the firm? 2. Is management generating adequate operating profits on the firm’s assets? 3. How is the firm financing its assets? 4. Are the owners (stockholders) receiving an adequate return on their investment?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Cengage Learning
Accounts Receivable and Accounts Payable; Author: The Finance Storyteller;https://www.youtube.com/watch?v=x_aUWbQa878;License: Standard Youtube License