Mixon Company's year-end balance sheets show the following
navingolyan (Not rated)
(Not rated)
Mixon Company's year-end balance sheets show the following
Required
Compare the year-end short-term liquidity position of this company at the end of 2006,2005 and 2004 by computing the (a) current ratio (b) acid-test ratio. Comment on the ratio results.
| 2006 | 2005 | 2004 | |
| Cash | $30,800 | $35,625 | $36,800 |
| Accounts Receivable, Net | 88,500 | 62,500 | 49,200 |
| Merchandise inventory | 111,500 | 82,500 | 53,000 |
| Prepaid Expenses | 9,700 | 9,375 | 4,000 |
| Plant Assets, net | 277,500 | 255,000 | 229,500 |
| Total Assets | 518,000 | 445,000 | 372,500 |
| Accounts Payable | 128,900 | 75,250 | 49,250 |
| Long term notes payable secured by mortgage on plant assets | 97,500 | 102,500 | 82,500 |
| Common stock $10 par value | 162,500 | 162,500 | 162,500 |
| Retained earnings | 129,100 | 104,750 | 78,250 |
| Total liabilities and equity | 518,000 | 445,000 | 372,500
|
12 years ago
100% correct result in excel file
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