analysis) The most recent balance sheet of Raconteurs, Inc., (in millions) is found here: LOADING... . a. Calculate Raconteurs' current ratio and acid-test (quick) ratio. b. Benchmark ratios for the current and acid-test (quick) ratio are 1.46 and 1.23, respectively. What can you say about the liquidity of Raconteur's operations based on these two ratios? Current assets Cash and marketable securities $10.2 Accounts receivable
analysis) The most recent balance sheet of Raconteurs, Inc., (in millions) is found here: LOADING... . a. Calculate Raconteurs' current ratio and acid-test (quick) ratio. b. Benchmark ratios for the current and acid-test (quick) ratio are 1.46 and 1.23, respectively. What can you say about the liquidity of Raconteur's operations based on these two ratios? Current assets Cash and marketable securities $10.2 Accounts receivable
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
(Liquidity analysis) The most recent balance sheet of Raconteurs, Inc., (in millions) is found here:
LOADING...
.a. Calculate Raconteurs' current ratio and acid-test (quick) ratio.
b. Benchmark ratios for the current and acid-test (quick) ratio are
1.46
and
1.23,
respectively. What can you say about the liquidity of Raconteur's operations based on these two ratios?|
Current assets
|
|
|---|---|
|
Cash and marketable securities
|
$10.2
|
|
Accounts receivable
|
$39.8
|
|
Inventory
|
$60.4
|
|
Total current assets
|
$110.4
|
|
Current liabilities
|
|
|
Accrued wages and taxes
|
$4.7
|
|
Accounts payable
|
$34.9
|
|
Notes payable
|
$29.2
|
|
Total current liabilities
|
$68.8
|
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