(b) A company had an average inventory last year of $209,000 and its inventory turnover was 6. If sales volume and unit cost remain the same this year as last and inventory turnover is 8 this year, what will average inventory have to be during the current year? (Round answer to 0 decimal places, e.g. 125.) Average Inventory $enter the average inventory in dollars rounded to 0 decimal places (c) A company has current assets of $90,000 (of which $44,000 is inventory and prepaid items) and current liabilities of $44,000. What is the current ratio? What
Answer each of the questions in the following unrelated situations.
(a) The
| Current Liabilities |
$enter current liabilities in dollars
|
(b) A company had an average inventory last year of $209,000 and its inventory turnover was 6. If sales volume and unit cost remain the same this year as last and inventory turnover is 8 this year, what will average inventory have to be during the current year? (Round answer to 0 decimal places, e.g. 125.)
| Average Inventory |
$enter the average inventory in dollars rounded to 0 decimal places
|
(c) A company has current assets of $90,000 (of which $44,000 is inventory and prepaid items) and current liabilities of $44,000. What is the current ratio? What is the acid-test ratio? If the company borrows $14,000 cash from a bank on a 120-day loan, what will its current ratio be? What will the acid-test ratio be? (Round answers to 2 decimal places, e.g. 2.50.)
|
Current Ratio
|
enter the ratio rounded to 2 decimal places
|
:1 | |
|---|---|---|---|
|
Acid Test Ratio
|
enter the ratio rounded to 2 decimal places
|
:1 | |
|
New Current Ratio
|
enter the ratio rounded to 2 decimal places
|
:1 | |
|
New Acid Test Ratio
|
enter the ratio rounded to 2 decimal places
|
:1 |
(d) A company has current assets of $628,000 and current liabilities of $255,000. The board of directors declares a cash dividend of $195,000. What is the current ratio after the declaration but before payment? What is the current ratio after the payment of the dividend? (Round answers to 2 decimal places, e.g. 2.50.)
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Current ratio after the declaration but before payment
|
enter the ratio rounded to 2 decimal places
|
:1 | |
|---|---|---|---|
|
Current ratio after the payment of the dividend
|
enter the ratio rounded to 2 decimal places
|
:1 |
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