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?
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
Related questions
Question
help tutor please

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

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps

Recommended textbooks for you

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
Biology
ISBN:
9781337676908
Author:
SCHNERING
Publisher:
Cengage

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
Biology
ISBN:
9781337676908
Author:
SCHNERING
Publisher:
Cengage
Essentials Health Info Management Principles/Prac…
Health & Nutrition
ISBN:
9780357191651
Author:
Bowie
Publisher:
Cengage