ACC 305 Week 1 E3-18, E3-20

E3-18 The current asset section of the Excalibur Tire Companys balance sheet consists of cash, marketable securities, accounts receivable, and inventories. The December 31, 2011, balance sheet revealed the following:

Required:

Determine the following 2011 balance sheet items:

1. Current assets

2. Shareholders equity

3. Noncurrent assets

4. Long-term liabilities

E3-20 Most decisions made by management impact the ratios analysts use to evaluate performance. Indicate (by letter) whether each of the actions listed below will immediately increase (I), decrease (D), or have no effect (N) on the ratios shown. Assume each ratio is less than 1.0 before the action is taken.