Aurora Enterprises provides the following data from its balance sheet: Item Amount ($) Cash on hand $500,000 Market securities $30,000 Net accounts and notes receivable $150,000 Retailers' inventories $600,000 Prepaid expenses $50,000 Accounts and notes payable (short term) $750,000 Accumulated liabilities $100,000 Calculate Aurora Enterprises' current ratio and acid-test ratio. a. 1.56; 0.80 b. 1.56; 0.85 c. 1.60; 0.82 d. 1.60; 0.85

Aurora Enterprises provides the following data from its balance sheet: Item Amount ($) Cash on hand $500,000 Market securities $30,000 Net accounts and notes receivable $150,000 Retailers' inventories $600,000 Prepaid expenses $50,000 Accounts and notes payable (short term) $750,000 Accumulated liabilities $100,000 Calculate Aurora Enterprises' current ratio and acid-test ratio. a. 1.56; 0.80 b. 1.56; 0.85 c. 1.60; 0.82 d. 1.60; 0.85

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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