Current Ratio

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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You have been provided the following information about the Pacifica Hotel:

Pacifica Hotel

Partial Balance Sheet

December 31, 2018

Current Assets

Cash 85,000

Marketable Securities 45,000

Accounts Receivable 25,000 I

nventory 18,000

Pre-Paid Expenses 17,000

Total 190,000

Current Liabilities

Wages Payable 39,000

Accounts Payable 52,000

Notes Payable 94,000

Total 185,000

1.Calculate the Current Ratio of the Pacifica Hotel.

2.Calculate the Acid Test Ratio of the Pacifica Hotel.

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