Assume that the current ratio for Delta Enterprises is 2.8, its acid-test ratio is 1.2, and its working capital is $420,000. Required: a. How much does the firm have in current liabilities? b. If the only current assets shown on the balance sheet for Delta Enterprises are Cash, Accounts Receivable, and Merchandise Inventory, how much does the firm have in Merchandise Inventory?

Comprehensive Medical Assisting: Administrative and Clinical Competencies (MindTap Course List)
6th Edition
ISBN:9781305964792
Author:Wilburta Q. Lindh, Carol D. Tamparo, Barbara M. Dahl, Julie Morris, Cindy Correa
Publisher:Wilburta Q. Lindh, Carol D. Tamparo, Barbara M. Dahl, Julie Morris, Cindy Correa
Chapter20: Accounting Practices
Section: Chapter Questions
Problem 3CR
icon
Related questions
Question

help tutor please

Assume that the current ratio for Delta Enterprises is 2.8,
its acid-test ratio is 1.2, and its working capital is
$420,000.
Required:
a. How much does the firm have in current liabilities?
b. If the only current assets shown on the balance sheet
for Delta Enterprises are Cash, Accounts Receivable, and
Merchandise Inventory, how much does the firm have in
Merchandise Inventory?
Transcribed Image Text:Assume that the current ratio for Delta Enterprises is 2.8, its acid-test ratio is 1.2, and its working capital is $420,000. Required: a. How much does the firm have in current liabilities? b. If the only current assets shown on the balance sheet for Delta Enterprises are Cash, Accounts Receivable, and Merchandise Inventory, how much does the firm have in Merchandise Inventory?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
Comprehensive Medical Assisting: Administrative a…
Comprehensive Medical Assisting: Administrative a…
Nursing
ISBN:
9781305964792
Author:
Wilburta Q. Lindh, Carol D. Tamparo, Barbara M. Dahl, Julie Morris, Cindy Correa
Publisher:
Cengage Learning
Case Studies In Health Information Management
Case Studies In Health Information Management
Biology
ISBN:
9781337676908
Author:
SCHNERING
Publisher:
Cengage
Principles Of Pharmacology Med Assist
Principles Of Pharmacology Med Assist
Biology
ISBN:
9781337512442
Author:
RICE
Publisher:
Cengage
Aquaculture Science
Aquaculture Science
Biology
ISBN:
9781133558347
Author:
Parker
Publisher:
Cengage
Intro To Health Care
Intro To Health Care
Health & Nutrition
ISBN:
9781337338295
Author:
Mitchell
Publisher:
Cengage
Essentials Health Info Management Principles/Prac…
Essentials Health Info Management Principles/Prac…
Health & Nutrition
ISBN:
9780357191651
Author:
Bowie
Publisher:
Cengage