Current ratio at end


Task: Financial ratios

Shown below are some key figures from the balance sheets of AA Company for two successive years:

                                                             December 31, 2000     December 31, 1999
Total assets (of which 30% are current)          $4,000,000                 $3,000,000
Current liabilities                                               320,000                     400,000
Bonds payable (long term)                               1,500,000                  1,200,000
 Capital stock, $10 par value                            1,000,000                  1,000,000
Retained earnings                                           1,180,000                      400,000

Dividends of $50,000 were declared and paid in 2000. Compute the following:

Current ratio at end of 1999 ___________to 1
Current ratio at end of 2000 ____________to 1
Working capital at end of 1999 $__________
Working capital at end of 2000$___________
Debt ratio at end of 1999__________%
Debt ratio at end of 2000 __________%
Earnings per share for 2000  $___________                          

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