CHAPTE A 5 ļ ACCOUNTING FOR MERCHANDISING ACTIVITIES263Dalck LookGM's Curnt PesitionA balance sheet of IBM contained the followin, items among others. (Dollaramounts are stated in millions,Cash....investment in marketable securities (current asset)770Notes & accounts receivable (net)..6.197...Other current receivables ...12,757inventories.1,092Prepaid expenses and other current assets..8,6-45Plant & other property (net of depreciation).1.559Accounts paysbie2i,082Loans payable (short term)Tares payable....2,627...1.629Otner current liabilities2.5346.587Long-term debt..Stockhoiders' equity..3,85838,263a From the above information, compute the amount of IBM's current assets andthe amount of its curren: lhabilities.ISTRUCTIONSb How much wori.ing capital does IBM have?c Coimpute the current ratio to the nearest tenth of a percent.

Given the following information: Cash: $770 Investment in marketable securities: $6,197 Notes &…

CHAPTER 5 I ACCOUNTING FOR MERCHANDISING ACTIVITIES 263 SE 58 R Look s Cur nsitlon A balance sheet of IBM contained the following items among others. (1)onal amounts are stated in millions.) Cash.. investment in marketable securities (current asset) 770 Notes & accounts receivable (net). 6.197 Other current receivabies. 12,757 inventories....... 1,092 Prepaid expenses and other current assets.. 8,6-15 Plant & other property (net of depreciation). 1.559 Accounts paysble... Loans payabie (short term) Taxes payable ... 2i,062 2,627 1.629 Otner current liabilities 2.534 6.587 Long-term debt.. Stockhoiders' equity. 3,858 38,263 JCTIONS From the above information, compute the amount of BM's current assets and the amount of its curren: habilities. a b How much wori.ing capital does IBM have? c Compute the current ratio to the nearest tenth of a percent,

CHAPTER 5 I ACCOUNTING FOR MERCHANDISING ACTIVITIES 263 SE 58 R Look s Cur nsitlon A balance sheet of IBM contained the following items among others. (1)onal amounts are stated in millions.) Cash.. investment in marketable securities (current asset) 770 Notes & accounts receivable (net). 6.197 Other current receivabies. 12,757 inventories....... 1,092 Prepaid expenses and other current assets.. 8,6-15 Plant & other property (net of depreciation). 1.559 Accounts paysble... Loans payabie (short term) Taxes payable ... 2i,062 2,627 1.629 Otner current liabilities 2.534 6.587 Long-term debt.. Stockhoiders' equity. 3,858 38,263 JCTIONS From the above information, compute the amount of BM's current assets and the amount of its curren: habilities. a b How much wori.ing capital does IBM have? c Compute the current ratio to the nearest tenth of a percent,

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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