Data pertaining to the current position of Forte Company follow: Cash $440,000 Marketable securities 175,000 Accounts and notes receivable (net) 335,000 Inventories 700,000 Prepaid expenses 44,000 Accounts payable 180,000 Notes payable (short-term) 230,000 Accrued expenses 290,000 Required: 1. Compute (A) the working capital, (B) the current ratio, and (C) the quick ratio. Round ratios to one decimal place.
Data pertaining to the current position of Forte Company follow: Cash $440,000 Marketable securities 175,000 Accounts and notes receivable (net) 335,000 Inventories 700,000 Prepaid expenses 44,000 Accounts payable 180,000 Notes payable (short-term) 230,000 Accrued expenses 290,000 Required: 1. Compute (A) the working capital, (B) the current ratio, and (C) the quick ratio. Round ratios to one decimal place.
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...
Related questions
Question
Data pertaining to the current position of Forte Company follow:
Cash | $440,000 |
Marketable securities | 175,000 |
Accounts and notes receivable (net) | 335,000 |
Inventories | 700,000 |
Prepaid expenses | 44,000 |
Accounts payable | 180,000 |
Notes payable (short-term) | 230,000 |
Accrued expenses | 290,000 |
Required:
1. | Compute (A) the |
||||||||||||||||||||
2. | Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results in the appropriate columns of the table provided. Consider each transaction separately and assume that only that transaction affects the data given. Round ratios to one decimal place.
|
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning