Partin Manufacturing has the following information available from its 12/31/09 a
ID: 2343622 • Letter: P
Question
Partin Manufacturing has the following information available from its 12/31/09 and 12/31/08 financial statements:
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12/31/09
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12/31/09
Cash
$ 12,000
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Accounts payable
$ 10,000
Accounts receivable
6,000
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Salaries payable
3,000
Inventory
40,000
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Taxes payable
9,000
Prepaid insurance
2,000
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Total current liabilities
$ 22,000
Total current assets
$ 60,000
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Notes payable
50,000
Property and equipment
80,000
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Total long-term liabilities
$ 50,000
Land
20,000
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Total liabilities
$ 72,000
Long-term assets
$100,000
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Capital stock
60,000
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Retained earnings
28,000
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Total stockholders' equity
$ 88,000
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Total liabilities and
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Total assets
$160,000
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stockholders' equity
$160,000
Other information
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Net income in 2009
$25,000
Inventory (12/31/08)
50,000
Credit sales in 2009
80,000
Cost of goods sold in 2009
45,000
Accounts receivable (12/31/08)
10,000
Partin's working capital at 12/31/09 is:
Answer
$138,000
$38,000
$88,000
$78,000
2 points
Question 51
Refer to the Partin Manufacturing information above. Partin's current ratio at 12/31/09 is: (round to two decimal places)
Answer
a. 2.73
b. 2.67
c. 1.39
d. .82
2 points
Question 52
Refer to the Partin Manufacturing information above. Partin's acid-test (or quick) ratio at 12/31/09 is: (round to two decimal places)
Answer
a. 2.73
b. 2.67
c. 1.39
d. .82
2 points
Question 53
Refer to the Partin Manufacturing information above. Partin's accounts receivable turnover ratio at 12/31/09 is: (round to two decimal places)
Answer
a. 3.13
b. 5.00
c. 10.0
d. 13.33
2 points
Question 54
Refer to the Partin Manufacturing information above. Partin's inventory turnover ratio at 12/31/09 is: (round to two decimal places)
Answer
a. 1.0
b. .50
c. .56
d. 2.00
Explanation / Answer
Working capital = Current Assets- Current Liabilities = 60,000 - 22,000 = 38,000
Answer: 38,000
51. Current ratio = Current Assets/Current Liabilities = 60,000/22,000 = 2.73
Answr: A, 2.73
52. Acid-test ratio = (Cash + Short-term investments + Current Receivables)/Current Liabilities = 18,000/22,000 = 0.82
answer: d. 0.82
53. Receivables turnover = Net Sales/Average Accounts Receivable = 80,000/8,000 = 10
answre: c 10.0
54. Inventory turnover = Cost of Goods Sold/Average Inventory = 45,000/45,000 = 1
answer: a 1.0