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

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 11MCQ: Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital...
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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

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