B Company provided the balance sheet below:Cash225 Accounts payable150Accounts receivable600 Accruals250Inventory475 Notes payable425Current assets1,300 Current liabilities825Net fixed assets1,000 Long-term debt625 Common equity325 Retained earnings525Total assets2,300 Total liab. & equity2300Compute for the Acid-test ratio. (2 decimal places)

The acid test ratio is calculated as quick assets divided by current liabilities.

Answered: Company provided the balance sheet…

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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B Company provided the balance sheet below:

Cash	225	Accounts payable	150
Accounts receivable	600	Accruals	250
Inventory	475	Notes payable	425
Current assets	1,300	Current liabilities	825
Net fixed assets	1,000	Long-term debt	625
		Common equity	325
		Retained earnings	525
Total assets	2,300	Total liab. & equity	2300

Compute for the Acid-test ratio. (2 decimal places)

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