2023 Income Statement Sales Cost of Goods Sold $ 770,000 $ 340,000 Depreciation Expense $ 95,000 Earnings before Interest and Taxes $ 335,000 Interest Expense $ 19,800 Taxable Income Tax Expense Net Income Dividends Paid Retained Earnings $ 315,200 $ 104,016 $ 211,184 $ 10,300 $ 200,884 Balance Sheet End of 2023 Beginning of 2023 Cash $ 280,000 $ 122,000 Accounts Receivable $ 50,000 $ 22,300 Inventory $ 188,000 $ 119,000 Net Fixed Assets $ 630,000 $ 630,000 Total Assets $1,148,000 $ 893.300 Accounts Payable Long-term Debt $ 158,000 $ $ 14,116 $ 71,800 121,500 Common Stock $ 375,000 $ 300,000 Accumulated Retained Earnings $ 600,884 $ 400,000 Total Liabilities & Shareholders' Equity $1,148,000 $ 893,300 Consider the financial statements displayed above. Based on these statements, calculate the firm's quick ratio as of the end of 2023. Note: Report your answer as a number rounded to two decimal points.
2023 Income Statement Sales Cost of Goods Sold $ 770,000 $ 340,000 Depreciation Expense $ 95,000 Earnings before Interest and Taxes $ 335,000 Interest Expense $ 19,800 Taxable Income Tax Expense Net Income Dividends Paid Retained Earnings $ 315,200 $ 104,016 $ 211,184 $ 10,300 $ 200,884 Balance Sheet End of 2023 Beginning of 2023 Cash $ 280,000 $ 122,000 Accounts Receivable $ 50,000 $ 22,300 Inventory $ 188,000 $ 119,000 Net Fixed Assets $ 630,000 $ 630,000 Total Assets $1,148,000 $ 893.300 Accounts Payable Long-term Debt $ 158,000 $ $ 14,116 $ 71,800 121,500 Common Stock $ 375,000 $ 300,000 Accumulated Retained Earnings $ 600,884 $ 400,000 Total Liabilities & Shareholders' Equity $1,148,000 $ 893,300 Consider the financial statements displayed above. Based on these statements, calculate the firm's quick ratio as of the end of 2023. Note: Report your answer as a number rounded to two decimal points.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:2023 Income Statement
Sales
Cost of Goods Sold
$ 770,000
$ 340,000
Depreciation Expense
$
95,000
Earnings before Interest and Taxes
$ 335,000
Interest Expense
$ 19,800
Taxable Income
Tax Expense
Net Income
Dividends Paid
Retained Earnings
$ 315,200
$ 104,016
$ 211,184
$
10,300
$ 200,884
Balance Sheet
End of 2023 Beginning of 2023
Cash
$ 280,000 $
122,000
Accounts Receivable
$ 50,000 $
22,300
Inventory
$ 188,000 $
119,000
Net Fixed Assets
$ 630,000 $
630,000
Total Assets
$1,148,000 $
893.300
Accounts Payable
Long-term Debt
$ 158,000 $
$ 14,116 $
71,800
121,500
Common Stock
$ 375,000 $
300,000
Accumulated Retained Earnings
$ 600,884 $
400,000
Total Liabilities & Shareholders' Equity
$1,148,000 $
893,300
Consider the financial statements displayed above. Based on these statements, calculate the firm's quick ratio as of the
end of 2023.
Note: Report your answer as a number rounded to two decimal points.
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