Mclaughlin Corporation\'s most recent balance sheet and income statement appear
ID: 2372953 • Letter: M
Question
Mclaughlin Corporation's most recent balance sheet and income statement appear below:
220
230
2,710
2,940
$4,470
$4,500
190
200
720
750
$1,590
$1,640
380
360
2,880
2,860
$4,470
$4,500
5,140
1,953
48
237
$552
(Show work for RATING)
A. 0.97
B. 0.55
C. 1.45
D. 0.30
2.)The following data have been taken from your company's financial records for the current year:
Statement of Financial PositionDecember 31, Year 2 and Year 1
(in thousands of dollars) Year 2 Year 1 Current assets: Cash $460 $410 Accounts receivable 640 650 Inventory 440 270 Prepaid expenses
220
230
Total current assets 1,760 1,560 Plant and equipment, net2,710
2,940
Total assets$4,470
$4,500
Liabilities and Stockholders' Equity Current liabilities: Accounts payable $440 $460 Accrued liabilities 240 230 Notes payable, short term190
200
Total current liabilities 870 890 Bonds payable720
750
Total liabilities$1,590
$1,640
Stockholders' equity: Preferred stock, $100 par value, 5% 950 950 Common stock, $1 par value 950 950 Additional paid-in capital--common stock 600 600 Retained earnings380
360
Total stockholders equity2,880
2,860
Total liabilites & stockholders equity$4,470
$4,500
Explanation / Answer
1 b 2 c 3 b