Cotuit company's current liabilities must be Cotuit Company has a current ratio of 5.9 and an acid-test ratioof 5.4. The company's current assets consist of cash, marketablesecurities, accounts receivable, and inventories. Inventoryequals $14,000. Cotuit Company's current liabilities must be

Concept of Current RatioThe current ratio is a financial metric that measures a company's ability to…

Answered: Cotuit Company has a current ratio of…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 6MCQ

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Cotuit Company has a current ratio of 5.9 and an acid-test ratio of 5.4. The company's current assets consist of cash, marketable securities, accounts receivable, and inventories. Inventory equals $14,000. Cotuit Company's current liabilities must be _. a. $12,400 b. $60,000 c. $28,000 d. $216,000. Need help
Cotuit Company has a current ratio of 5.9 and an acid-test ratio of 5.4. The company's current assets consist of cash, marketable securities, accounts receivable, and inventories. Inventory equals $14,000. Cotuit Company's current liabilities must be _. a. $12,400 b. $60,000 c. $28,000 d. $216,000. Need help to get solution for this financial accounting problem
Sheridan Industries has the following current assets and liabilities on the company's balance sheet: Cash $14080: Accounts Receivable $5600 Inventory $53000: Prepaid Rent $2900 Accounts Payable $19000 and Unearned Revenue $5000. The company's acid-test ratio would be O 101:1 O 122:1 0 032:1 Ⓒ 0.27:1
General Accounting
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What is amount of current liabilities?
The following data are taken from the financial statements of Colby Company. Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 Accounts Receivable turnover Average collection period (b) 2022 $550,000 2022 2021 4,300,000 4,000,000 7.9 times $540,000 2021 7.5 times 46.2 days 48.7 days What conclusions about the management of accounts receivable can be drawn from the accounts receivable turnover and the average collections period.
Assume that the current ratio for Arch Company is 3.5, its acid-test ratio is 1.5, and its working capital is $330,000. Answer each of the following questions independently, always referring to the original information. Required: a. How much does the firm have in current liabilities? Note: Do not round intermediate calculations. b. If the only current assets shown on the balance sheet for Arch Company are Cash, Accounts Receivable, and Merchandise Inventory, how much does the firm have in Merchandise Inventory? Note: Do not round intermediate calculations. c. If the firm collects an account receivable of $101,000, what will its new current ratio and working capital be? Note: Round "Current ratio" to 1 decimal place. d. If the firm pays an account payable of $53,000, what will its new current ratio and working capital be? Note: Do not round intermediate calculations. Round "Current ratio" to 1 decimal place. e. If the firm sells inventory that was purchased for $50,000 at a cash price…
Valenzuela, Incorporated, has a cash cycle of 41.5 days, an operating cycle of 59.3 days, and an inventory period of 25.6 days. The company reported cost of goods sold in the amount of $465,000, and credit sales were $749,000. What is the company's average balance in accounts payable and accounts receivable? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Average accounts payable Average accounts receivable
What is the value of current liabilities?
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Cotuit Company has a current ratio of 5.9 and an acid-test ratio of 5.4. The company's current assets consist of cash, marketable securities, accounts receivable, and inventories. Inventory equals $14,000. Cotuit Company's current liabilities must be