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

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 13MCQ
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General Accounting

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
Transcribed Image Text: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
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