Solve this one for general accounting Assume that the current ratio for Arch Company is 3.5, its acid-test ratio is1.5, and its working capital is $370,000.Required:a. How much does the firm have in current liabilities?b. If the only current assets shown on the balance sheet for Arch Companyare Cash, Accounts Receivable, and Merchandise Inventory, how much doesthe firm have in Merchandise Inventory?

Step 1: Define Current LiabilityA company is required to pay off current liabilities within one…

Answered: Assume that the current ratio for Arch…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 20MCQ

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Which of the following is included in the numerator of the Acid-Test Ratio calculation (check all that apply) A. Supplies B. Net Current Receivables C. Short-Term Investments D. Merchandise Inventory Which of the following ratios helps measure a company's ability to pay its current liabilities? (check all that apply) A. Accounts Receivable Turnover B. Days' Sales in Inventory C. Acid Test Ratio D. Cash Ratio
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Please give me answer general accounting
What is total net sales for this company? What is total gross profit for this company? What is total operating expenses for this company? What is net income for this company? What is the company's gross profit ratio, also called gross profit margin ratio? Just enter the digits without decimals or punctuation.
Can you please answer the accounting question?
Assume the following relationships for the Caulder Corp.: Sales/Total assets Return on assets (ROA) Return on equity (ROE) Calculate Caulder's profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Do not round intermediate calculations. Round your answers to two decimal places. Profit margin: Debt-to-capital ratio: % % 1.9x 8.0% 13.0%
What is the amount of current liabilities?
Given the following information for the Duke Tire Company, find the firm's debt ratio (i.e., total liabilities / total assets): ROE (N/E) = 0.37 (expressed as a decimal) Total asset turnover ratio (S/A) = 2.2 Net profit margin (N/S) = 0.09 (expressed as a decimal)
4. Technology Systems has the following balance sheet. Assume that all current assets are used in operations. How much net operating working capital does the firm have? Also, how important is net operation working capital to a company? Cash Accounts receivable Inventory Current assets Net fixed assets Total assets $ 100 650 550 Accounts payable Accruals Notes payable Current liabilities Long-term debt Common equity Retained earnings $2,300 Total liab. & equity $ 1,300 $1,000 $ 200 110 590 $ 900 600 300 500 $2,300
Please provide answer the following requirements on this accounting question
Effect of Transactions on Current Position Analysis Data pertaining to the current position of Forte Company follow: Cash $412,500 Marketable securities 187,500 Accounts and notes receivable (net) 300,000 Inventories 700,000 Prepaid expenses 50,000 Accounts payable 200,000 Notes payable (short-term) 250,000 Accrued expenses 300,000 Required: 1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios to one decimal place. a. Working capital 900,000 b. Current ratio 2.2 C. Quick ratio 1.2 2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results in the appropriate columns. Consider each transaction separately and assume that only that transaction affects the data given. Round ratios to one decimal place. Transaction Working Capital Current Ratio Quick Ratio a. Sold marketable securities at no gain or loss, $70,000.
The current ratio: a. Is used to help assess a company's ability to pay its debts in the near future. b. Measures the effect of operating income on profit. c. Is used to measure the relationship between assets and long-term debt. d. Is used to measure a company's collection period.

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