Financial Accounting Cotuit Company has a current ratio of 3.8and an acid-test ratio of 3.6. The company'scurrent assets consist of cash, marketableaccounts receivable, andInventory equals $12,000.Cotuit Company's current liabilities must besecurities,inventories.a. $2,400b. $60,000c. $12,000d. $216,000

Step 1: First, calculate the Current Assets and Quick Assets values in terms of liabilities then…

Answered: Cotuit Company has a current ratio of…

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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Cotuit Company has a current ratio of 3.8 and an acid-test ratio of 3.6. The company's current assets consist of cash, marketable accounts receivable, and Inventory equals $12,000. Cotuit Company's current liabilities must be securities, inventories. a. $2,400 b. $60,000 c. $12,000 d. $216,000