Answer each of the questions in the folowing unrelated situations. (a) The curent ratio of a company is 6:1 and its acid-test ratio is 1:1. If the tnventories and prepald items amount to $523,000, what is the amount of current Itabitities? Current Luabllities (b) A company had an average Inventory last year of $210,000 and its Inventory tumover was 5. If sales volume and unit cost remain the same this year as last and Inventory turnover is 8 this year, what will average Inventory have to be dunng the curme year? (Round answer to o decimal places, Eg. 12s.) Average Inventory (c) A company has current assets of $95,000 (of which $38,000 s Inventory and prepald items) and current liabilities of $38,000. What is the current ratio? what Is the acid-test ratio? If the company borrows $13,000 cash from a bank on a 120-day loan s current ratio be? What will the acd-test ratio be? (Round answers to 2 decimal places, e.g. 2.50.) will Current Ratio Add Test Ratio New Current Ratio New Acid Test Ratio (d) A company has current assets of $604,000 and current ilabilities of $218,000. The board of directors declares a cash dividend of $183,000. What is the current ratio after the declaration but before payment? what is the current ratio after the paymem dividend? (Round answers to 2 decimal places, e.g. 2.50.) Current ratio after the declaration but before payment Ourrent ratio after the payment of the dividend
Answer each of the questions in the folowing unrelated situations. (a) The curent ratio of a company is 6:1 and its acid-test ratio is 1:1. If the tnventories and prepald items amount to $523,000, what is the amount of current Itabitities? Current Luabllities (b) A company had an average Inventory last year of $210,000 and its Inventory tumover was 5. If sales volume and unit cost remain the same this year as last and Inventory turnover is 8 this year, what will average Inventory have to be dunng the curme year? (Round answer to o decimal places, Eg. 12s.) Average Inventory (c) A company has current assets of $95,000 (of which $38,000 s Inventory and prepald items) and current liabilities of $38,000. What is the current ratio? what Is the acid-test ratio? If the company borrows $13,000 cash from a bank on a 120-day loan s current ratio be? What will the acd-test ratio be? (Round answers to 2 decimal places, e.g. 2.50.) will Current Ratio Add Test Ratio New Current Ratio New Acid Test Ratio (d) A company has current assets of $604,000 and current ilabilities of $218,000. The board of directors declares a cash dividend of $183,000. What is the current ratio after the declaration but before payment? what is the current ratio after the paymem dividend? (Round answers to 2 decimal places, e.g. 2.50.) Current ratio after the declaration but before payment Ourrent ratio after the payment of the dividend
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Answer each of the questions In the following unrelated situations.
(@) The curTent ratio of a company Is 6:1 and Its acid-test ratio is 1:1. If the Inventories and prepald items amount to $523,000, what Is the amount of current llabillitles?
Current Llabilities
(b) A company had an aVerage Inventory last year of $210,000 and Its Inventory tumover Was 5. If sales volume and unit cost remaln the samne this year as last and Inventory turnover Is 8 this year, what will average Inventory have to be during the current
year? (Nound answer do 0 decimal places, e.g.125.
Average Inventory
(c) A company has current assets of S95,000 (of which $38,000 15 Inventory and prepaid tems) and current llabilities of $38,000, What Is the Current ratlo? What Is the aeid-test rabo? IF the company borows $13,000 cash from a bank on a 120-day loan, what
will its current ratlo be? What will the add-test ratio bez (Round answers to 2 decimalplaces, c.0. 2.50.)
Current Ratlo
Add Test Ratio
New Current Ratio
New Acld Test Ratio
(d) A company has current assets of $604,000 and current llablMes of $218,000. The board of directors declares a cash dividend of $183,000. What Is the current ratlo after the declaration but before payment? what Is the current ratio after the payment of the
dividend? (Round answers to 2 decimal places, e.g. 2.50.)
Current ratio after the declaration but before payment
Current ratio after the payment of the dividend
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