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

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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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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