Blue Spruce Company provides you with the following halance sheet information as of December 31, 2022.
Current assets
$11,300
Current liabilities
$13,400
Long term assels
25,950
Long-term liabilities
10.450
Stockholders' equity
13,400
Total assets
$37,250
Total liabilities and stockholders equity
$37,250
(a)
In addition, Blue Spruce reported net income for 2022 of $16.400, income tax expense of $3,280, and interest expense of $1,250.
(a)
Compute the current ratio and working capital for Blue Spruce for 2022. (Round ratio to 2 decimal places, e.g. 2.75:1. Enter negative
amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Current ratio
Working capital
:1
(b)
Assume that at the end of 2022, Blue Spruce used $3,000 cash to pay off $3,000 of accounts payable. How would the current ratio and
working capital have changed? (Round ratio to 2 decimal places, e.g. 2.75:1. Enter negative amounts using either a negative sign preceding the
number eg. -45 or parentheses e.g. (45).)
Current ratio
Working capital
(c)
:1
Compute the debt to assets ratio and the times interest earned ratio for Blue Spruce for 2022. (Round answers to 1 decimal place, es.
15.2 or 15.2%).
Debt to assets ratio
Times interest earned ratio
%
