Hello I have another assignment if your are able to complete. Please use the Jan- Feb numbers on the guidance report. Please let me know if you can complete this. Thank you. Attachment 1 Attachment 2 ATTACHMENT PREVIEW Download attachment Week 5 Assignment Problems.docx Chapter 9 Exercise 3 1. Liquidity ratios. Edison, Stagg, and Thornton have the following financial information at the close of business on July 10: Edison Stagg Thornton $4,000 $2,500 $1,000 Short-Term Investments 3,000 2,500 2,000 Accounts Receivable 2,000 2,500 3,000 Inventory 1,000 2,500 4,000 Prepaid Expenses 800 800 800 Accounts Payable 200 200 200 3,100 3,100 3,100 300 300 300 3,800 3,800 3,800 Cash Notes Payable: Short-Term Accrued Payables Long-Term Liabilities a. Compute the current and quick ratios for each of the three companies. (Round calculations to two decimal places.) Which firm is the most liquid? Why? b. Suppose Thornton is using FIFO for inventory valuation and Edison is using LIFO. Comment on the comparability of information between these two companies. c. If all short-term notes payable are due on July 11 at 8 a.m., comment on each company’s ability to settle its obligation in a timely manner. Chapter 9 Exercise 4 1. Computation and evaluation of activity ratios. The following data relate to Alaska Products Inc.: 20X5 20X4 Net Credit Sales $832,000 $760,000 Cost of Goods Sold 440,000 350,000 Cash, Dec. 31 125,000 110,000 Accounts Receivable, Dec. 31 180,000 140,000 70,000 50,000 115,000 108,000 Inventory, Dec. 31 Accounts Payable, Dec. 31 2. The company is planning to borrow $300,000 via a 90-day bank loan to cover short-term operating needs. a. Compute the accounts-receivable and inventory-turnover ratios for 20X5. Alaska rounds all calculations to two decimal places. b. Study the ratios from part (a) and comment on the company’s ability to repay a bank loan in 90 days. c. Suppose that Alaska’s major line of business involves the processing and distribution of fresh and frozen fish throughout the United States. Do you have any concerns about the company’s inventory-turnover ratio? Briefly discuss. Chapter 9 Problem 1 1. Horizontal and vertical analysis. The following financial statements pertain to Waterloo Corporation: WATERLOO CORPORATION Comparative Balance Sheets December 31,20X5 and 20X4 20X5 Assets 20X4 Current Assets Cash $ 11,250 $ 12,500 Accounts Receivable (net) 18,500 25,000 Inventories 38,500 35,000 __3,750 __3,750 $ 72,000 $ 76,250 $ 102,750 $ 101,250 Equipment (net) 28,500 30,000 Vehicles (net) 32,000 40,000 $ 163,250 $ 171,250 __$ 14,750 __$ 2,500 $ 250,000 $ 250,000 Prepaid Expense Total Current Assets Property, Plant, and Equipment Buildings (net) Total Property, Plant, and Equipment Trademarks (net) Total assets Liabilities and Stockholders’ Equity Current Liabilities Accounts Payable Notes Payable $ 49,000 $ 70,000 13,500 40,000 Federal Taxes Payable __2,500 __25,000 Total Current Liabilities $ 65,000 $ 135,000 __$ 50,000 __$ 25,000 $ 115,000 $ 160,000 $ 25,000 $ 25,000 Retained Earnings __110,000 __65,000 Total Stockholders’ Equity $ 135,000 $ 90,000 Total Liabilities and Stockholders’ Equity $ 250,000 $ 250,000 Long-Term Debt Total Liabilities Stockholders’ Equity Common Stock, $10 par WATERLOO CORPORATION Comparative Income Statements For the Years Ending December 31, 20X5 and 20X4 20X5 20X4 Net Sales $ 550,000 $500,000 Cost of Goods Sold __330,000 __250,000 Gross Profit $ 220,000 $250,000 Operating Expense __132,500 __100,000 Income Before Interest and Taxes $ 87,500 $150,000 Interest Expense __12,500 __3,000 Income Before Taxes $ 75,000 $147,000 Income Tax Expense __30,000 __58,800 Net Income $ 45,000 $ 88,200 Instructions a. Prepare a horizontal analysis of the balance sheet, showing dollar and percentage changes. Round all calculations in parts (a) and (b) to two decimal places. b. Prepare a vertical analysis of the income statement by relating each item to net sales. c. Briefly comment on the results of your a