1. What is the current Ratio assuming company A has the following data in its balance sheet? Current Asset of $3500,000Current Liability of $3200,000a) 1.09:1b) 1.35:1c) 0.9:1d) 1:1.092. What is the current Ration assuming Company B has the following data in its balance sheet? Current Asset of $3,200,000Currebt Liability of $3,500,000a) 1:1.27b) 1.09:1c) 1:0.79d) 0.91:1 Examine the balance sheet and income statement information for both companies below. Use the drop-down pick list that is associated with each boxed area to select the accounts receivable turnover ratio anddays outstanding. Correct selections will turn the boxed area green.Beginning accounts receivableEnding accounts receivableNet credit salesAccounts receivable turnover >>>>Days outstanding (rounded) >>>>Financial Statement InformationA Company1,000,0001,500,0005,000,000B Company250,000200,0002,250,000

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Answered: 1. What is the current Ratio assuming…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. What is the current Ratio assuming company A has the following data in its balance sheet?
Current Asset of $3500,000

Current Liability of $3200,000

a) 1.09:1

b) 1.35:1

c) 0.9:1

d) 1:1.09

2. What is the current Ration assuming Company B has the following data in its balance sheet?
Current Asset of $3,200,000

Currebt Liability of $3,500,000

a) 1:1.27

b) 1.09:1

c) 1:0.79

d) 0.91:1

Examine the balance sheet and income statement information for both companies below. Use the drop-
down pick list that is associated with each boxed area to select the accounts receivable turnover ratio and
days outstanding. Correct selections will turn the boxed area green.
Beginning accounts receivable
Ending accounts receivable
Net credit sales
Accounts receivable turnover >>>>
Days outstanding (rounded) >>>>
Financial Statement Information
A Company
1,000,000
1,500,000
5,000,000
B Company
250,000
200,000
2,250,000

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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