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    brettmaher74's Avatar
    brettmaher74 Posts: 1, Reputation: 1
    New Member
     
    #1

    Oct 2, 2009, 02:49 PM
    HOMEWORK/FINANCNG RATIOS. It deals with liquidity Ratios
    Given Information:
    Bronco Electronics' current assets consist of cash, marketable securities, accounts receivable, and inventories. The following Data was abstracted from a recent financial statments:

    Inventories 150,000
    Total Assets 1,400,000
    Current Ratio 3
    Acid-Test Ratio 2.25
    Debt to Equity 1.5

    Compute the following:
    1. Current Assets
    2. Shareholder's Equity=560,000
    3. Noncurrent Assets
    4. Long-term liability


    I have no idea how to use the given info to find these missing values, any help would be greatly appreciated.
    Curlyben's Avatar
    Curlyben Posts: 18,514, Reputation: 1860
    BossMan
     
    #2

    Oct 2, 2009, 03:12 PM
    One copy and paste deserves another:

    Thank you for taking the time to copy your homework to AMHD.
    Please refer to this announcement: Ask Me Help Desk - Announcements in Forum : Homework Help
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
     
    #3

    Oct 2, 2009, 09:09 PM

    If you know about the composition of ratios, you can do the rest. We will not solve the problem for you, but we can guide you how to solve the problem.

    1 Current Assets = Inventory + Liquid assets
    2. Non current assets = Total assets - Current Assets
    3. Debt ratio = Debt/Equity
    4. Current ratio = Current Assets/Current Liabilities
    5. Acid test Ratio = Liquid Assets/Current Liabilities

    With the help of available figures, just fill in the blamks to get your answer
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
     
    #4

    Oct 3, 2009, 02:49 AM

    This is a "missing numbers" problems. Take all the equations and start filling in what you know. Some of the information given is the answers to the ratios, so you have to work backwards to get the missing numbers. You've found one. You can also utilize your accounting equation.
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
    Senior Member
     
    #5

    Oct 3, 2009, 05:04 AM
    Brett, with a bit of detective work and some persistence you'll be fine. Referring to Rehmanvohra's points 1, 4, and 5, here's a hint on Current Assets:

    First note that the Current Ratio (CR) is .

    The only difference between CR and the Acid-Test Ratio (ATR) is that Inventory is included in current assets in the former, but excluded from CA in the ATR: .

    Next note that the ATR can be rewritten as . Since you've been given the values for Current Ratio, Inventory, and ATR, that ATR equation becomes

    . From here you can quickly solve for CL, which in turn will allow you to determine Current Assets.
    mayakhan's Avatar
    mayakhan Posts: 5, Reputation: 1
    New Member
     
    #6

    Oct 12, 2011, 02:52 PM
    Bronco Electronics' current assets consist of cash, marketable securities, accounts receivable, and inventories. The following data was abstracted from a recent financial statement:
    inventories 150,000
    total assets 1,400,000
    current ratio 3
    acid-test ratio 2.25
    debt to equity ratio 1.5

    Required: Compute the following for Bronco:
    Current assets
    Shareholders' equity
    Noncurrent assets
    Long-term liabilities
    mayakhan's Avatar
    mayakhan Posts: 5, Reputation: 1
    New Member
     
    #7

    Oct 12, 2011, 02:54 PM
    Bronco Electronics' current assets consist of cash, marketable securities, accounts receivable, and inventories. The following data was abstracted from a recent financial statement:
    inventories 150,000
    total assets 1,400,000
    current ratio 3
    acid-test ratio 2.25
    debt to equity ratio 1.5

    Required: Compute the following for Bronco:
    Current assets
    Shareholders' equity
    Noncurrent assets
    Long-term liabilities

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