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.

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

Problem 1SEB

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