BMAL 530 Homework 3

Description

Question 1

 

Use the following information to compute profit margin for each separate company a through e. (Round your answers to 1 decimal place.)

 

Which of the five companies is the most profitable according to the profit margin ratio?

 

Question 2

 

Use the information in the following adjusted trial balance for the Wilson Trucking Company.

 

1. Calculate the current ratio. Assume that the industry average for the current ratio is 1.5.

 

2. Compare Wilson’s current ratio with the industry average.

 

Question 3

 

Use the above adjusted trial balance to prepare Wilson Trucking Company’s classified balance sheet as of December 31.

 

Question 4

 

The following adjusted year-end trial balance at December 31 of Wilson Trucking Company.

 

(1) Prepare the income statement for the year ended December 31.

 

(2) Prepare the statement of owner’s equity for the year ended December 31.

 

Question 5

 

Compute the current ratio and acid-test ratio for each of the following separate cases.