Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition

SOLUTION TO EXERCISE 14-2

(a)

1. 330,000; 103,000
2. 160,000; 103,000
3. 203,000; 800,000
4. 72,000; 568,500
5. 72,000; 30,000
6. 900,000; 790,000
7. 126,000; 6,000
8. 72,000; 900,000
9. 72,000; 790,000
10. 15,000; 72,000
11. 900,000; 72,500; 365 days; 12.41
12. 550,000; 160,000; 365 days; 3.44
13. 72,000; 30,000
14. 30; 2.40

Approach: Write down the components of each ratio to be computed. (Refer to Illustration 14-1 when needed.) Extract the pertinent data from the financial statements and additional information.

Explanation: