At the end of last year, Bralnerd & Co. had a quick ratlo of 1.4, a current ratio of 3.0, a days sales outstanding (DSO) of 36.5 days (based on a 365-day year), total current assets of $810,000 and cash of $120,000. Its current assets consist of cash, accounts recelvable, and Inventory. Assume that the level of current assets and current labilities were stable throughout the year. Please calculate last year amounts for Bralnerd's' 1. Current llabilitles. 2. Inventory 3. Accounts receivable.
At the end of last year, Bralnerd & Co. had a quick ratlo of 1.4, a current ratio of 3.0, a days sales outstanding (DSO) of 36.5 days (based on a 365-day year), total current assets of $810,000 and cash of $120,000. Its current assets consist of cash, accounts recelvable, and Inventory. Assume that the level of current assets and current labilities were stable throughout the year. Please calculate last year amounts for Bralnerd's' 1. Current llabilitles. 2. Inventory 3. Accounts receivable.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
Related questions
Question
At the end of last year, Bralnerd & Co. had a quick ratlo of 1.4, a current ratio of 3.0, a days sales
outstanding (DSO) of 36.5 days (based on a 365-day year), total current assets of $810,000 and cash
of $120,000. Its current assets consist of cash, accounts recelvable, and Inventory. Assume that the
level of current assets and current labilities were stable throughout the year.
Please calculate last year amounts for Bralnerd's'
1. Current llabilitles.
2. Inventory
3. Accounts receivable.
4. Sales
5. Brainerd plans to borrow short-term funds from a bank (notes payable) and use these funds to
Immediately purchase additional Inventory. The bank, however, Imposes a covenant on this loan,
requiring Brainerd's current ratio not to fall below 2.5. How much short-term bank debt (I.e.,
Notes Payable or NP) can Brained borrow without pushing its current ratio below 2.5?
(Note: For each question, please show detalled explanations as to how you proceed to your answer
along with detailed calculations).
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning