2A2A BROOMALL CORPORATION HAS DECIDED TO INCLUDE CERTAIN FINANCIAL RA...
21.
CSO: 2A2a
LOS: 2A2a
Broomall Corporation has decided to include certain financial ratios in its year-end
annual report to shareholders. Selected information relating to its most recent fiscal year
is provided below.
• Cash
$10,000
• Accounts receivable
20,000
• Prepaid expenses
8,000
• Inventory
30,000
• Available-for-sale securities
-At cost
9,000
-Fair value at year end
12,000
• Accounts payable
15,000
• Notes payable (due in 90 days)
25,000
• Bonds payable (due in 10 years)
35,000
• Net credit sales for year
220,000
• Cost of goods sold
140,000
Broomall’s working capital at year end is
a.
$40,000.
b.
$37,000.
c.
$28,000.
d.
$10,000.