PROF Socrates| A condensed balance sheet for Bradford Corporation prepared at the end of the year appears as follows: |
| Assets | Liabilities & Stockholders' Equity | |||||
| Cash | $ | 100,000 | Notes payable (due in 6 months) | $ | 43,000 | |
| Accounts receivable | 130,000 | Accounts payable | 99,000 | |||
| Inventory | 250,000 | Long-term liabilities | 316,000 | |||
| Prepaid expenses | 60,000 | Capital stock, $5 par | 300,000 | |||
| Plant & equipment (net) | 570,000 | Retained earnings | 442,000 | |||
| Other assets | 90,000 | |||||
| Total | $ | 1,200,000 | Total | $ | 1,200,000 | |
During the year the company earned a gross profit of $1,116,000 on sales of $2,950,000. Accounts receivable, inventory, and plant assets remained almost constant in amount throughout the year, so year-end figures may be used rather than averages. |
| a. | Compute the current ratio. (Round your answer to 2 decimal places.) |
| b. | Compute the quick ratio. (Round your answer to 2 decimal places.) |
| c. | Compute the working capital. |
| d. | Compute the debt ratio. (Round your percentage answers to nearest whole percent. i.e. 0.1234 as 12%.) |
| e. | Compute the accounts receivable turnover (all sales were on credit). (Round your answer to 2 decimal places.) |
| f. | Compute the Inventory turnover. (Round your answer to 2 decimal places.) |
| g. | Compute the book value per share of capital stock. (Round your answer to 2 decimal places.) |
10 years ago
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bradford_corporation.xlsx
