Camaro GTO Torino Cash $ 2,550 $ 260 $ 1,300 Short-term investments 0 0 700 Current receivables 290 540 650 Inventory 2,250 2,080 3,200 Prepaid expenses 400 700 900 Total current assets $ 5,490 $ 3,580 $ 6,750 Current liabilities $ 2,280 $ 1,350 $ 3,700 Compute the acid-test ratio for each of the following separate cases. Camaro- GTO- Torino-

Camaro GTO Torino Cash $ 2,550 $ 260 $ 1,300 Short-term investments 0 0 700 Current receivables 290 540 650 Inventory 2,250 2,080 3,200 Prepaid expenses 400 700 900 Total current assets $ 5,490 $ 3,580 $ 6,750 Current liabilities $ 2,280 $ 1,350 $ 3,700 Compute the acid-test ratio for each of the following separate cases. Camaro- GTO- Torino-

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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Problem 8-9B (Algo) Calculate and analyze ratios (LO8-6) Selected financial data regarding current assets and current liabilities for Ferris Air and Oceanic Airlines are provided as follows: Oceanic Airlines ($ in millions) Current assets: Cash and cash equivalents Current investments Net receivables Inventory Other current assets Total current assets. Current liabilities: Current debt Accounts payable Other current liabilities Total current liabilities Req 1A Req 1B Ferris Air Req 2A Current Ratio $1,265 3,144 851 565 310 $6,135 Required: 1-a. Calculate the current ratio for Ferris Air and Oceanic Airlines. 1-b. Which company has the more favorable current ratio? 2-a. Calculate the acid-test (quick) ratio for Ferris Air and Oceanic Airlines. 2-b. Which company has the more favorable acid-test ratio? $6,539 2,712 $9,251 Complete this question by entering your answers in the tabs below. Req 2B Ferris Air $5,084 1,391 1,884 428 677 $9,464 $6,674 2,447 1,644 $10,765 Calculate the current…
A condensed balance sheet for Simultech Corporation and a partially completed vertical analysis are presented below. Complete the vertical analysis by computing each missing line item as a percentage of total assets. (Round your answers to the nearest whole percent.) SIMULTECH CORPORATION Balance Sheet (summarized) January 31 (in millions of U.S. dollars) Cash $433 29 % Current Liabilities $409 27 % Accounts Receivable 294 19 Long-term Liabilities 495 33 Inventory 206 14 Total Liabilities 904 Other Current Assets 109 Common Stock 118 Property and Equipment 27 2 Retained Earnings 492 32 Other Assets 445 29 Total Stockholders’ Equity 610 Total Assets $1,514 100 % Total Liabilities & Stockholders’ Equity $1,514 100 % 2A. What percentage of Simultech’s total assets relate to inventory? (Round your answer to the nearest whole percent.) 2B. What percentage of Simultech’s total assets relate to property…
Erastic Corporation has $17,000 in cash, $9,500 in marketable securities, $38,500 in account receivable, $46,000 in inventories, and $45,000 in current liabilities. The corporation’s current assets consist of cash, marketable securities, accounts receivable, and inventory. The corporation’s acid-test ratio is closest to: Multiple Choice 2.47 1.23 0.86 1.44
Subject: acounting
Camaro GTO Torino Cash $ 2,400 $ 230 $ 1,300 Short-term investments 0 0 600 Current receivables 260 510 500 Inventory 2,175 2,020 3,050 Prepaid expenses 300 600 900 Total current assets $ 5,135 $ 3,360 $ 6,350 Current liabilities $ 2,220 $ 1,320 $ 3,550 a. Compute the acid-test ratio for each of the separate cases above.b. Which company is in the best position to meet short-term obligations?
Presented below is the December 31 trial balance of New York Boutique. New York BoutiqueTrial BalanceDecember 31 Debit Credit Cash $ 18,500 Accounts Receivable 32,000 Allowance for Doubtful Accounts $ 700 Inventory, December 31 80,000 Prepaid Insurance 5,100 Equipment 84,000 Accumulated Depreciation—Equipment 35,000 Notes Payable 28,000 Common Stock 80,600 Retained Earnings 10,000 Sales Revenue 600,000 Cost of Goods Sold 408,000 Salaries and Wages Expense (sales) 50,000 Advertising Expense 6,700 Salaries and Wages Expense (administrative) 65,000 Supplies Expense 5,000 000,000 $754,300 $754,300 Instructions a. Construct T-accounts and enter the balances shown. b. Prepare adjusting journal entries for the following and post to the T-accounts. (Omit explanations.) Open additional T-accounts as necessary. (The books are closed yearly on December 31.) 1. Bad debt expense to be recorded is…
Ivanhoe Ltd. has the following selected financial information at September 30, 2024: Cash $4290, Accounts Receivable $1300 Unearned Revenue $3980, current assets of $40000, and current abilities of $43000. The company's acid-test ratio would be Ⓒ 0.80:1 0 0.931 00131 O 1401
The current ratio for the following is ..... Group of answer choices .43 .23 .73 .53
Cash Short-term investments Current receivables Inventory Prepaid expenses Total current assets Current liabilities Camaro $ 2,400 0 260 2,175 300 $ 5,135 $ 2,220 GTO $ 230 0 510 2,020 600 $ 3,360 $ 1,320 Torino $ 1,300 600 500 3,050 900 $ 6,350 $ 3,550 a. Compute the acid-test ratio for each of the separate cases above. b. Which company is in the best position to meet short-term obligations?

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	Camaro	GTO	Torino
Cash		$	2,550	$	260	$	1,300
Short-term investments			0		0		700
Current receivables			290		540		650
Inventory			2,250		2,080		3,200
Prepaid expenses			400		700		900
Total current assets		$	5,490	$	3,580	$	6,750
Current liabilities		$	2,280	$	1,350	$	3,700