Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. chapter 4 the balance sheet (1): assets 11. the ba

Chapter 4 The Balance Sheet (1): Assets 11. The balance sheet of Steel Traders Inc....

90.2K

Verified Solution

Question

Accounting

Chapter 4 The Balance Sheet (1): Assets 11. The balance sheet of Steel Traders Inc. as at December 31, 2020, was as follows: Current assets Cash Receivables Inventory Total Long-term assets Total $ 50,000 450,000 425.000 $ 925,000 500,000 $1.425.000 Current liabilities Trade payables Bank loan Income tax due Total Long-term liabilities Total liabilities Equity Share capital Retained earnings Total Total $ 165,000 180,000 55,000 $ 400,000 Required (a) Calculate the following ratios: (i) Current ratio (ii) Quick ratio (iii) Receivables turnover ratio (iv) Receivables collection period 450.000 $ 850.000 $ 175,000 400.000 $ 575.000 $1.425.000 You are told that the sales revenue for 2020 was $9,800,000 and that the company made a net income of $500,000 in 2020.
image
Chapter 4 The Balance Sheet (1): Assets 11. The balance sheet of Steel Traders Inc. as at December 31, 2020, was as follows: You are told that the sales revenue for 2020 was $9,800,000 and that the company made a net income of $500,000 in 2020. Required (a) Calculate the following ratios: (i) Current ratio (ii) Quick ratio (iii) Receivables turnover ratio (iv) Receivables collection period

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Weights, standard deviation, and average returns for 50 stocks and a market index are known. The...

Finance
Q

True or False: (PE = Physical Education) 1. A degree in Physical Education was historically viewed...

Biology
Q

A particle in the infinite square well (width a) starts out being equally likely to be...

Physics
Q

Radioactive iodine is given to patients to reduce thyroid growth or activity. The iodine I53131, has...

Physics
Q

What is the threshold stimulus (V) in the lower forelimb muscle with a 20g load?A....

Biology
Q

cos 7 Evaluate the expression sin 1

Basic Math
Q

Now determine the frequencies The class frequency is the total number of data values in...

Basic Math
Q

Horizontal analysis of income statement Macklin Inc. Comparative Income Statement For the Years...

Accounting
Q

Polaskdi Company manufactures and sells a single product called a Ret. Operating at capacity, the...

Accounting
Q

In 2022, Bridget and Jeremy are married with two children, Laura and Sam. Bridget earns...

Accounting
Q

If an asset is disposed of during the year,there is no need to calculate depreciation...

Accounting
Q

The IASB Framework identifies user groups. Which of the following is NOT an information need...

Accounting