173. Fill in the blanks (a) through (g) for the Corman Company, Inc. for each of the income statements for 2014 and 2015. Corman Company, Inc. Income Statements For the years ended December 31 2014 2015 Sales............................... $10,000 (e) Cost of goods sold...................... Merchandise inventory (beginning).......... 375 750 Total cost of merchandise purchases......... 3,625 4,875 Merchandise inventory (ending)............ 750 (d) Cost of goods sold..................... (a)____ 5,000 Gross profit........................... 6,750 5,200 Operating expenses..................... 3,750 (c)____ Net income (b) . $ 2,500 174. The following information is available for Flanders and its two main competitors in the industry, Sanders and Anders: Flanders Sanders Anders Cash............................ $9,800 $10,500 $26,500 Short-term investments............... 6,400 8,200 12,500 Accounts receivable.................. 12,500 8,500 14,350 Merchandise inventory............... 30,150 40,000 40,150 Prepaid expense.................... 900 6,750 2,450 Accounts payable................... 19,400 13,750 26,800 Salaries payable.................... 1,200 3,500 6,250 Other current payables............... 600 1,200 2,150 The industry standard for the current ratio is 1.8 and the industry standard for the acid-test ratio is 1. Required: 1. Calculate the current ratio and acid-test ratio for each firm. 2. Rank the firms in decreasing order of liquidity. 3. Comment on Flanders’ relative liquidity position.

173. Fill in the blanks (a) through (g) for the Corman Company, Inc. for each of the income statements for 2014 and 2015. Corman Company, Inc. Income Statements For the years ended December...

173. Fill in the blanks (a) through (g) for the Corman Company, Inc. for each of the income statements for 2014 and 2015.

Corman Company, Inc. Income Statements For the years ended December 31
	2014	2015
Sales...............................	$10,000	(e)
Cost of goods sold......................
Merchandise inventory (beginning)..........	375	750
Total cost of merchandise purchases.........	3,625	4,875
Merchandise inventory (ending)............	750	(d)
Cost of goods sold.....................	(a)____	5,000
Gross profit...........................	6,750	5,200
Operating expenses.....................	3,750	(c)____
Net income	(b) .	$ 2,500

174. The following information is available for Flanders and its two main competitors in the industry, Sanders and Anders:

	Flanders	Sanders	Anders
Cash............................	$9,800	$10,500	$26,500
Short-term investments...............	6,400	8,200	12,500
Accounts receivable..................	12,500	8,500	14,350
Merchandise inventory...............	30,150	40,000	40,150
Prepaid expense....................	900	6,750	2,450
Accounts payable...................	19,400	13,750	26,800
Salaries payable....................	1,200	3,500	6,250
Other current payables...............	600	1,200	2,150

The industry standard for the current ratio is 1.8 and the industry standard for the acid-test ratio is 1.

Required:

1. Calculate the current ratio and acid-test ratio for each firm.

2. Rank the firms in decreasing order of liquidity.

3. Comment on Flanders’ relative liquidity position.

May 15, 2022

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173. Fill in the blanks (a) through (g) for the Corman Company, Inc. for each of the income statements for 2014 and 2015. Corman Company, Inc. Income Statements For the years ended December...

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