B Company provided the balance sheet below: Accounts payable 150 Cash 225 Accruals 250 Accounts receivable 600 Inventory 475 Notes payable 425 Current liabilities 825 Current assets 1,300 1,000 Net fixed assets Long-term debt 625 Common equity 325 Retained earnings 525 Total liab. & Total assets 2.300 2300 equity Compute for the Acid-test ratio. (2 decimal places)
B Company provided the balance sheet below: Accounts payable 150 Cash 225 Accruals 250 Accounts receivable 600 Inventory 475 Notes payable 425 Current liabilities 825 Current assets 1,300 1,000 Net fixed assets Long-term debt 625 Common equity 325 Retained earnings 525 Total liab. & Total assets 2.300 2300 equity Compute for the Acid-test ratio. (2 decimal places)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
B Company provided the
Accounts
payable
150
Cash
225
Accruals
250
Inventory
475
Notes payable 425
Current
liabilities
825
Current assets
1,300
1,000
Net fixed assets
Long-term debt 625
Common equity 325
earnings
525
Total liab. &
Total assets
2.300
2300
equity
Compute for the Acid-test ratio. (2 decimal places)
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