Solved: Determining the working capital and current ratio, Finance Basics

+44 141 628 6080
[email protected]

Determining the working capital and current ratio

On June 30, 2008, Thorpe Company's total current assets were $250,000 and its total current liabilities were $125,000. On July 1, 2008, Thorpe issued a long-term note to a bank for $25,000 cash.

Required

a. Compute Thorpe's working capital before and after issuing the note.

b. Compute Thorpe's current ratio before and after issuing the note.

Solution Preview :

Prepared by a verified Expert

Finance Basics: Determining the working capital and current ratio

Reference No:- TGS0679593

Now Priced at $10 (50% Discount)

Recommended (91%)

Rated (4.3/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : How much will each twin have at age sixty five

Mary waits ten years and then invests $2000 per year for the next 30 years. Assuming they both earn 8 percent, how much will each twin have at age 65?

Q : The amount of income tax expense for each of the four years

Woodward Corporation purchases a new machine for $50,000 on January 1, 2013. The machine has a four-year estimated service life and an estimated salvage value of zero.

Q : Probability related to profit

JenCo tracks their daily profits and has found that the distribution of profits is approximately normal with a mean of $20,700.00 and a standard deviation of about $750.00. Compute the probability that tomorrow's profit will be:

Q : Explain the beginning of the process

A company uses a process cost accounting system and the Weighted Average inventory valuation method. Its Assembly Department's beginning inventory consisted of 50,000 units.

Q : Determining the working capital and current ratio

On June 30, 2008, Thorpe Company's total current assets were $250,000 and its total current liabilities were $125,000. On July 1, 2008, Thorpe issued a long-term note to a bank for $25,000 cash.

Q : Determine the mabels net pay for the month of september

Mabel Miller is paid monthly. For the month of September, she earned a total of $6,200. FICA tax for social security is 6.2% and the FICA tax for Medicare is 1.45%.

Q : Determine the value of the forward contract at given point

Suppose the manager enters into the contract at the price you found in Part A. Now, 75 days later, the stock price is $55.75. Determine the value of the forward contract at this point.

Q : How much interest revenue should be reported

Cohen Company issued a 10% note receivable for $20,000 on August 1, 2010. The note has a maturity date of July 31, 2013. How much interest revenue should be reported for the year 2010 for this note?

Q : Explain the beginning and ending inventory

Front Company had net income of $72,500 based on variable costing. Beginning and ending inventories were 800 units and 1,200 units, respectively.

1937204

Questions
Asked

3,689

Active Tutors

1425529

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Solution Preview :

Prepared by a verified Expert

Finance Basics: Determining the working capital and current ratio

Reference No:- TGS0679593

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : How much will each twin have at age sixty five

Q : The amount of income tax expense for each of the four years

Q : Probability related to profit

Q : Explain the beginning of the process

Q : Determining the working capital and current ratio

Q : Determine the mabels net pay for the month of september

Q : Determine the value of the forward contract at given point

Q : How much interest revenue should be reported

Q : Explain the beginning and ending inventory

Problem concerning consensual sexual relationship

Examine historical literature to the most current period

Outline a social issue that is important to you

Review a social, behavioral, or cultural factor

Identify one antecedent, one behaviour, and one consequence

Is lifespan psychologists are unlikely to investigate

Problem regarding the america youth and social media

Solution Preview :

Prepared by a verified Expert

Finance Basics: Determining the working capital and current ratio

Reference No:- TGS0679593

Recent Questions Asked Finance Basics

Q : How much will each twin have at age sixty five

Q : The amount of income tax expense for each of the four years

Q : Probability related to profit

Q : Explain the beginning of the process

Q : Determining the working capital and current ratio

Q : Determine the mabels net pay for the month of september

Q : Determine the value of the forward contract at given point

Q : How much interest revenue should be reported

Q : Explain the beginning and ending inventory

Asked Questions