A firm's balance sheet has the following data: Cash on hand $450,000 Market securities $25,000 Net accounts and notes receivable $125,000 Retailers' inventories $560,000 Prepaid expenses $48,500 Accounts and notes payable (short term) $700,000 Accumulated liabilities $120,000 The firm's current ratio and acid-test ratio are closest to what values? a. 1.42; 0.73. b. 1.42; 0.79. c. 1.47; 0.73. d. 1.47; 0.79.

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter24: Analysis Of Financial Statements
Section: Chapter Questions
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A firm's balance sheet has the following data:

A firm's balance sheet has the following data:
Cash on hand
$450,000
Market securities
$25,000
Net accounts and notes receivable
$125,000
Retailers' inventories
$560,000
Prepaid expenses
$48,500
Accounts and notes payable (short term) $700,000
Accumulated liabilities
$120,000
The firm's current ratio and acid-test ratio are closest to what
values?
a. 1.42; 0.73.
b. 1.42; 0.79.
c. 1.47; 0.73.
d. 1.47; 0.79.
Transcribed Image Text:A firm's balance sheet has the following data: Cash on hand $450,000 Market securities $25,000 Net accounts and notes receivable $125,000 Retailers' inventories $560,000 Prepaid expenses $48,500 Accounts and notes payable (short term) $700,000 Accumulated liabilities $120,000 The firm's current ratio and acid-test ratio are closest to what values? a. 1.42; 0.73. b. 1.42; 0.79. c. 1.47; 0.73. d. 1.47; 0.79.
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