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    8.1 Hytek Corporation Ended 2012 With Cash of $50,000, Accounts Receivable of $100,000, and Inventory

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    Naomi Aira Gole Cruz
    This document provides financial information for Hytek Corporation for the year ending 2012, including cash, accounts receivable, inventory, property and equipment, current and long-term liabilities, stockholders' equity, sales, expenses, interest income/expense, and income taxes. It asks to prepare a balance sheet and income statement based on the figures provided, and then calculate and comment on the current ratio, acid test ratio, leverage ratio, and profit margin based on the results.

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    8.1 Hytek Corporation Ended 2012 With Cash of $50,000, Accounts Receivable of $100,000, and Inventory

    Uploaded by

    Naomi Aira Gole Cruz
    183 views2 pages
    This document provides financial information for Hytek Corporation for the year ending 2012, including cash, accounts receivable, inventory, property and equipment, current and long-term liabilities, stockholders' equity, sales, expenses, interest income/expense, and income taxes. It asks to prepare a balance sheet and income statement based on the figures provided, and then calculate and comment on the current ratio, acid test ratio, leverage ratio, and profit margin based on the results.

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    This document provides financial information for Hytek Corporation for the year ending 2012, including cash, accounts receivable, inventory, property and equipment, current and long-term liabilities, stockholders' equity, sales, expenses, interest income/expense, and income taxes. It asks to prepare a balance sheet and income statement based on the figures provided, and then calculate and comment on the current ratio, acid test ratio, leverage ratio, and profit margin based on the results.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    183 views2 pages

    8.1 Hytek Corporation Ended 2012 With Cash of $50,000, Accounts Receivable of $100,000, and Inventory

    Uploaded by

    Naomi Aira Gole Cruz
    This document provides financial information for Hytek Corporation for the year ending 2012, including cash, accounts receivable, inventory, property and equipment, current and long-term liabilities, stockholders' equity, sales, expenses, interest income/expense, and income taxes. It asks to prepare a balance sheet and income statement based on the figures provided, and then calculate and comment on the current ratio, acid test ratio, leverage ratio, and profit margin based on the results.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    8.

    1 Hytek Corporation ended 2012 with cash of $50,000, accounts receivable of $100,000, and inventory
    of $300,000. Properly, plant, and equipment were valued at their original cost of $470,000, less
    accumulated depreciation of $170,000. Current liabilities other than income taxes owed (see details that
    follow) were $120,000, and long-term debt was $250,000. Stockholders’ equity consisted of (a) $90,000
    capital stock investment and (b) accumulated retained earnings, which had totaled $130,000 at the end
    of 2011. Net sales for 2012 were $900,000. Expenses included $500,000 as cost of goods sold, $50,000
    as allowance for depreciation. $85,000 as selling expenses, and $65,000 as G&A expense. Interest
    income and expense were $5,000 and $25,000, respectively, and income taxes for the year (unpaid at
    year’s end) were $80,000. Dividends of $20,000 were paid. Prepare a balance sheet and an income
    statement reflecting these figures.
    8.2 Use the output of Questions 8-1 to calculate the current ratio, acid test ratio, leverage ratio, and
    profit margin of Table 8-3. Comment on the values you obtain.

    Current Assets
    Current Ratio=
    Current Liabilities
    $ 450,000
    Current Ratio= =2.25
    $ 200,000
    Current Asset−Inventory
    Acid Test Ratio=
    Current Liabilities

    $ 450,000−$ 300,000
    Acid Test Ratio= =0.75
    $ 200,000
    Total Debt
    Leverage Ratio=
    Total Assets
    $ 450,000
    Leverage Ratio= =0.6
    $ 750,000
    Net Income
    Profit Margin=
    Net Sales
    $ 100,000
    Profit Margin= =11 %
    $ 900,000

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