Answered: A company has current assets of $92,000…

Name: c) A company has current assets of $92,000 (of which $37,000 is invent
Uploaded: 2022-11-18T00:26:54.000Z
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Description: c) A company has current assets of $92,000 (of which $37,000 is inventory and prepaid items) and current liabilities of $37,000. What is the current ratio? What is the acid-test ratio? If the company borrows $14,000 cash from a bank on a 120-day loan

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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c) A company has current assets of $92,000 (of which $37,000 is inventory and prepaid items) and current liabilities of $37,000. What is the current ratio? What is the acid-test ratio? If the company borrows $14,000 cash from a bank on a 120-day loan, what will its current ratio be? What will the acid-test ratio be? (Round answers to 2 decimal places, e.g. 2.50.)

Current Ratio	enter the ratio rounded to 2 decimal places	:1
Acid Test Ratio	enter the ratio rounded to 2 decimal places	:1
New Current Ratio	enter the ratio rounded to 2 decimal places	:1
New Acid Test Ratio	enter the ratio rounded to 2 decimal places

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