ACC 205 Week 5: Assignment

Satisfactory Essays
Week 5 – Assignment
Ilba Rodriguez
ACC 205: Principles of Accounting I
Prof. Theresa Murray
November 16, 2014
Problem 1 – Liquidity ratios.
A.

Edison
Stagg
Thornton
Current ratio
3.56
3.69
3.83
Quick ratio
3.06
2.78
2.5

Current ratio calculations:
Edison
($6,000 (cash) + $3,000 (short-term investments) + $2,000 (AR) + $1,000 (inventory) + $800 (prepaid expenses)) / ($200 (AP) + $3,100 (notes payable) + $300 (accrued payables)) = 3.56
Stagg
($5,000 (cash) + $2,500 (short-term investments) + $2,500 (AR) + $2,500 (inventory) + $800 (prepaid expenses)) / ($200 (AP) + $3,100 (notes payable) + $300 (accrued payables)) = 3.69
Thornton
($4,000 (cash) + $2,000 (short-term investments) + $3,000 (AR) + $4,000 (inventory) + $800 (prepaid expenses))
…show more content…
Current Liabilities have decreased in 20X2 with the exception of long-term liabilities, which has raised an additional $3,000 for the year. Cost of goods sold in 20X2 has lowered but the operating expenses has raised.

Problem 6 – Ratio computation.
a) ($400 (cash & short-term investments) +$ 3,000 (AR)) / $3,900 (current liabilities) = 0.87

b) $6,400 (current assets) / $3,900 (current liabilities) = 1.64

c) 20X2 = $3,000 and 20X1 = $2,300
$3,000 + $2,300 =
…show more content…
$5,300 / 2 = $2,650
20,000 (cost of goods sold) / 2,650 (average inventory) = 7.55

d) 20X2 = $3,000 and 20X1 = $2,400
$3,000 + $2,400 = $5,400
$5,400 / 2 = $2,700
$36,000 (net credit sales) / $2,700 (average net AR) = 13.33

e) 20X2 = $9,600 and 201 = $6,800
$9,600 + $6,800 = $16,400
$16,400 / 2 = $8,200
$3,600 (net income) / $8,200 (average assets) = 43.90

f) $3,600 (net income) / $36,000 (net sales) = 0.10

g) 20X2 = $1,600 and 20X1 = $ 1,100
$1,600 + $1,100 = $2,700
$2,700 / 2 = $1,350
$3,600 (net income) / $1,350 (average common stockholder’s equity) = 2.67

h) $8,000 (total liabilities) / $9,600 (total assets) =

You May Also Find These Documents Helpful

  • Satisfactory Essays

    ACC 205 Week 4 Assignment

    • 668 Words
    • 3 Pages

    There is ACC 205 Week 4 Assignment P7-31A, P8-32A, P8-26A, P8-27A, P7-27A in this pack. Deadline: ( ), Business - Accounting Week1 D1: As you have learned in this week’s readings the Accounting Equation is + Owners’ Equity. Is the accounting equation true in all instances? Provide sample transactions from your own experiences to demonstrate the validity of the Accounting Equation. D2: What does the term account mean? What are the different classifications of accounts? How do…

    • 668 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Acc 205 Week 1 Assignment

    • 1709 Words
    • 7 Pages

    Basic Accounting Equations Angela M. Hill-McBride ACC 205 Professor Ivory December 17, 2012 Basic Accounting Equations 1. Basic concepts. Jean's Marine Supply specializes in the sale of boating equipment and accessories. Identify the items that follow as an asset (A), liability (L), revenue (R), or expense (E) from the firm's viewpoint. a. The inventory of boating supplies owned by the company. (A) b. Monthly rental charges paid for store space. (L) c. A loan owed to Citizens…

    • 1709 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    ACC 205

    • 317 Words
    • 2 Pages

    ACC 205 WEEK 3 COMPLETE WORK to purchase this, visit here http://www.coursehomework.com/product/acc-205-week-3-complete-work/ ACC 205 WEEK 3 COMPLETE WORK ASSIGNMENT: ACC 205 Week Three Exercise Solution 1. Specific identification method: 2. Inventory valuation methods: 3. Perpetual inventory system: 4. Inventory valuation methods: 5. Depreciation methods: 6. Depreciation computations: 7. Depreciation computations: ACC205_Week_Three_Exercise_Assignment: Inventory 1. Specific identification method…

    • 317 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    ACC 205 WEEK 1 ASSIGNMENT

    • 895 Words
    • 8 Pages

    journal entries The following transactions pertain to the Jennifer Royall Company: General Journal Date Accounts Debits Credit May 1 Cash $25,000 Land $15,000 Investment $40,000 Invested cash and land into business May 5 Revenue $1000 Accounts Receivable $1000 Provided service on account May 9 Wage Expense $1250 Cash $1250 Paid wages to employees May 14 Office Equipment $4200 Accounts Payable $4200 Purchased computer…

    • 895 Words
    • 8 Pages
    Satisfactory Essays
  • Powerful Essays

    ACC 205 Week 2

    • 1254 Words
    • 7 Pages

    Week Two Exercise Assignment Revenue and Expenses 1. Recognition of concepts. Jim Armstrong operates a small company that books entertainers for theaters, parties, conventions, and so forth. The company’s fiscal year ends on June 30. Consider the following items and classify each as either (1) prepaid expense, (2) unearned revenue, (3) accrued expense, (4) accrued revenue, or (5) none of the foregoing. a. Interest owed on the company's bank loan, to be paid in early July Prepaid expense…

    • 1254 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Accounting statements and ratios provide a great deal of information about a company’s financial stability. Some of the concepts to be discussed in further detail include horizontal analysis, current ratio, quick ratio, and cash to current liabilities ratio. A horizontal analysis is used to compare data from two or more periods side by side. The current ratio reveals the relative amount of working capital by dividing current assets by current liabilities. A quick ratio is calculated by dividing the…

    • 672 Words
    • 10 Pages
    Good Essays
  • Satisfactory Essays

    Find needed answers here https://bitly.com/12B18Ql This document ACC 205 Week 5 Discussion Question 2 Current Liabilities comprises solution of this task: "There are two types of current liabilities that must be estimated. Describe them and explain why they must be estimated. How are the financial statements affected if they are not estimated? Respond to at least two of your classmates Deadline: ( ), Business - Accounting Week1 D1: As you have learned in this week’s readings the Accounting…

    • 1033 Words
    • 8 Pages
    Satisfactory Essays
  • Satisfactory Essays

    In this file ACC 291 Week 5 WileyPLUS Assignment you can find right answers on the following questions: Exercise E13-1. Pioneer Corporation had the transactions below during 2011. Analyze the transactions and indicate whether each transaction resulted in a cash flow from operating activities, investing activities, financing activities, or noncash investing and financing activities. Complete the statement of cash flows for 2011 using the indirect method. (List amounts from largest positive…

    • 466 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    Week 5: E-text Learning Team Assignments ACC/400 Week 5: E-text Learning Team Assignments Financial Accounting: Tools for Business Decision Making, 4th edition Chapter 13: Communication Activity: BYP 13-7 Write a memo to R.J. Falk that explains the basis for comparison and the factors affecting quality of earnings. Memo To: R.J. Falk CEO From: Team B Date: May 24, 2010 Re: Financial Statement Analysis The purpose of this memo is to explain (a) the…

    • 1080 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    ACC 205

    • 1344 Words
    • 12 Pages

    Pepsi ACC205: Principles of Accounting Instructor Susanne Eliott August 19, 2013 Pepsi PepsiCo Inc. is an American multinational food and beverage corporation headquartered in Purchase, New York. PepsiCo is a world leader in convenient snacks, foods, and beverages, with revenues of $60 billion and over 285,000 employees. PepsiCo owns some of the world's most popular brands, including Pepsi-Cola, Mountain Dew, Diet Pepsi, Lay's, Doritos, Tropicana, Gatorade, and Quaker. Coca-Cola…

    • 1344 Words
    • 12 Pages
    Powerful Essays