B. Comparative financial data for two companies are shown below: Cash Notes Receivable Accounts Receivable (net) Inventories Furniture & Equip. (net) Accounts Payable Accrued Expenses Unearned Income Long-term Payables CYBER CORP. 2. Current Ratio 3. Quick Ratio P 90,000 54,000 288,000 600,000 80,000 252,000 20,000 16,000 150,000 SPACE CORP. 181,440 108,000 540,000 1,423,560 200,000 720,000 104,000 40,000 Required: Based on the above information, determine which of the two companies is more short-term solvent by presenting the following financial ratios and measurements: 1. Net Working Capital

B. Comparative financial data for two companies are shown below: Cash Notes Receivable Accounts Receivable (net) Inventories Furniture & Equip. (net) Accounts Payable Accrued Expenses Unearned Income Long-term Payables CYBER CORP. 2. Current Ratio 3. Quick Ratio P 90,000 54,000 288,000 600,000 80,000 252,000 20,000 16,000 150,000 SPACE CORP. 181,440 108,000 540,000 1,423,560 200,000 720,000 104,000 40,000 Required: Based on the above information, determine which of the two companies is more short-term solvent by presenting the following financial ratios and measurements: 1. Net Working Capital

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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