Partin Manufacturing has the following information available from its 12/31/09 a
ID: 2343635 • Letter: P
Question
Partin Manufacturing has the following information available from its 12/31/09 and 12/31/08 financial statements:
?
12/31/09
? ?
12/31/09
Cash
$ 12,000
?
Accounts payable
$ 10,000
Accounts receivable
6,000
?
Salaries payable
3,000
Inventory
40,000
?
Taxes payable
9,000
Prepaid insurance
2,000
?
Total current liabilities
$ 22,000
Total current assets
$ 60,000
? ? ?
? ? ?
Notes payable
50,000
Property and equipment
80,000
?
Total long-term liabilities
$ 50,000
Land
20,000
?
Total liabilities
$ 72,000
Long-term assets
$100,000
? ? ?
? ? ?
Capital stock
60,000
? ? ?
Retained earnings
28,000
? ? ?
Total stockholders' equity
$ 88,000
? ? ?
Total liabilities and
?
Total assets
$160,000
?
stockholders' equity
$160,000
Other information
: ?
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
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