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At December 31 a company's records show the following information (values in dollars): Cash 10,000 Accounts Receivable 30,000 Inventory 80,000 Prepaid Insurance Non-current |(long-term) assets 6,000 200,000 Accounts Payable Notes payable 30,000 25,000 -due in 10 months Wages payable 5,000 Non-current |(long-term) liabilities 70,000 Shareholder's |(owner's) equity 196,000

At December 31 a company's records show the following information (values in dollars): Cash 10,000 Accounts Receivable 30,000 Inventory 80,000 Prepaid Insurance Non-current |(long-term) assets 6,000 200,000 Accounts Payable Notes payable 30,000 25,000 -due in 10 months Wages payable 5,000 Non-current |(long-term) liabilities 70,000 Shareholder's |(owner's) equity 196,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Calculate (a) the company's working capital (b) the company's current ratio ( c) quick ratio

At December 31 a company's records show the following information (values in dollars): Cash 10,000 Accounts Receivable 30,000 Inventory 80,000 Prepaid Insurance Non-current (long-term) assets 6,000 200,000 Accounts Payable Notes payable 30,000 25,000 due in 10 months Wages payable 5,000 Non-current (long-term) liabilities Shareholder's (owner's) equity 70,000 196,000
Transcribed Image Text:At December 31 a company's records show the following information (values in dollars): Cash 10,000 Accounts Receivable 30,000 Inventory 80,000 Prepaid Insurance Non-current (long-term) assets 6,000 200,000 Accounts Payable Notes payable 30,000 25,000 due in 10 months Wages payable 5,000 Non-current (long-term) liabilities Shareholder's (owner's) equity 70,000 196,000
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