Down Company Manufacturing has the following select financial data as of Decembe31.CashCash EquivalentsAccounts ReceivableTotal Current LiabilitiesWhat is the cash ratio?$20,0004,0003,00030,000

Cash ratio is computed as = (Cash + cash equivalent) / Current liabilities

Answered: Down Company Manufacturing has the…

Down Company Manufacturing has the following select financial data as of Dec 31. Cash $20,000 Cash Equivalents 4,000 Accounts Receivable 3,000 Total Current Liabilities 30,000 What is the cash ratio?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Complete the balance sheet and sales information using the following financial data: Total assets…

A: Lets understand the basics.Financial ratio gets calculated in order to determine financial health of…

Q: Valenzuela, Incorporated, has a cash cycle of 45.5 days, an operating cycle of 67 days, and an…

A: Operating cycle is calculated by taking the inventory turnover days and the account receivable days…

Q: The following information is taken from Reagan Company's December 31 balance sheet: Cash and cash…

A: days sales uncollected means number of days before receivables will collected. It also known as…

Q: ABC's financial record shows the following cash data: Cash Balance, 1/1/2020 325,000 Cash receipts…

A: The closing cash balance means the balance which remains after adding all cash receipts during the…

Q: Computing the cash ratio Smythe Banners reported the Following figures in its financial statements:…

A: Cash ratio: Cash ratio is a financial ratio which measures the liquidity of a company. It is…

Q: Ray's beginning and ending accounts receivable balances are $147,990 and $142,720, respectively.…

A: Cash collections for the period = Opening balance of accounts receivable + Credit sales for the…

Q: Sales for the year were $586,296. Accounts receivable were $96,782 and $77,940 at the beginning and…

A: Cash flows from operating activities: It is a section of the Statement of cash flow that explains…

Q: The following information relates to a company's accounts receivable: gross accounts receivable…

A: Bad debt expense is an expense account. The amounts of loss incurred from extending credit to the…

Q: Choose the letter of the correct answer: Sassy Company provided the following data for the month of…

A: A bank reconciliation statement is a statement that summarizes the banking and entity's business…

Q: Financial data for Otto Company follow: For Year Ended December 31 $ 69,350 Cash on December 31 Cash…

A: The cash outflow from operations have been given as 114000, so we have considered thm as…

Q: Smith Automotive Parts had the following select financial data as of December 31, 2015: Cash…

A: Given the following information: Cash: $15,000 Cash Equivalents: $3,000 Total Current Assets:…

Q: Calvani, Inc., has a cash cycle of 43.5 days, an operating cycle of 63 days, and an inventory period…

A: Variables in the question:Cash cycle=43.5 daysOperating cycle=63 daysInventory period=27 days Cost…

Q: Find out the company's cash ratio which has cash of P7500, cash equivalents of P26,250, accounts…

A: Cash ratio is an liquidity ratio, where it can be found out by adding cash available with…

Q: Need Help with this Question

A: To compute the amount of credit sales, we must take into account the opening balance of Accounts…

Q: Ratio of Cash to Monthly Cash Expenses Financial data for Abrams Company follow: For Year Ending…

A: Monthly Cash expense= Cash flow from operation/ 12months = $ 79200/12 = $ 6600 per month

Q: Give company's cash cycle

A: The cash cycle, also known as the cash conversion cycle (CCC), is a metric that measures how long it…

Q: Want Correct Answer with calculation

A: Step 1: Identify the formula for credit sales and the given valuesCredit Sales = Customer payments -…

Q: Saxe Banners reported the following figures in its financial statements: Cash Cash Equivalents…

A: Cash ratio is calculated by dividing cash and cash equivalents by current liabilities. Cash and…

Q: A company has the following information: Net credit sales = $400,000 Net income = $100,000 Average…

A: The ratio is the technique used by the prospective investor or an individual or strategist to read…

Q: The following selected account balances appeared on the financial statements of Washington Company:…

A: Cash payments for merchandise are found as beginning accounts payable plus purchases minus ending…

Q: Given beginning and ending accounts receivable of $20,000 and $23,000, respectively, and assuming…

A: Sales on account = Ending accounts receivable + Cash collections - Beginning accounts receivable…

Question

Down Company Manufacturing has the following select financial data as of Decembe
31.
Cash
Cash Equivalents
Accounts Receivable
Total Current Liabilities
What is the cash ratio?
$20,000
4,000
3,000
30,000

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!

SEE SOLUTION Check out a sample Q&A here

Step 1: Brief Description

VIEW

Step 2: Computation of cash ratio

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

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.

Similar questions

The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. Accounts receivable, end of year Sales on account 20Y3 $ 725,000 5,637,500 2012 $ 650,000 4,687,500 20Y1 $600,000 Horizontally analyze the financial data in Exercise 17-9. (b) Calculate how many days it took Sigmon Inc. to collect its recieivables (i.e. Sigmon's average collection period) in 20Y3. Show your work.
Choose the letter of the correct answer: Sassy Company provided the following data for the month of July: Cash in bank: *Balance June 30 - 1,000,000; *Book debits for July including June CM for note collected, P300,000 - 4,000,000; *Book credits for July including NSF of P100,000 and service charge of P4,000 - 3,600,000. Bank statement for July: *Balance June 30 - 1,650,000; *Bank debits for July including service charge of P1,000 and June outstanding checks of P854,000 - 2,500,000; *Bank credits for July including CM for bank loan of P500,000 and June deposit in transit of P400,000 - 3,500,000. Compute for the deposit in transit on July 31: a.1,100,000b.1,800,000c.2,800,000d.1,600,000
The cash register tape for sunland industries reported sales of 28,032.00. Record the journal entry that would be necessary for each of the following situations. (a) sales per cash register tape exceeds cash on hand by $45.00. (b) Cash on hand exceeds cash reported by cash register tape by $27.50. Round answers to 2 decimal places, e.g. 52.75.
How is the beginning cash balance 410,925 in March?
Smythe Banners reported the following figures in its financial statements: Cash $ 26,500 Cash Equivalents 5,000 Total Current Liabilities 30,000 Compute the cash ratio for Smythe Banners
The following items appeared on the financial statements of Washington Company. Line Item Description Amount Accounts receivable, January 1 $13,084 Accounts receivable, December 31 6,949 Accounts payable, January 1 5,909 Accounts payable, December 31 9,591 Inventory, January 1 8,120 Inventory, December 31 16,988 Sales 64,741 Cost of goods sold 32,521 Washington Company uses the direct method to report cash flows from (used for) operating activities. Assume that all accounts payable are owed to merchandise suppliers Cash received from customers during the year is
Accounts Receivable Balance Beginning accounts receivable were $135,720 and ending accounts receivable were $128,640. All sales were on credit and totalled $1,682,480. Required: Determine how much cash was collected from customers.
The companys balance sheet showed an accounts receivble balance of $80,000 at the begininng of the year and $47,000 at the end of the year. The company reported $720,000 in credit sales for the year. What was the amount of cash collected on account receivables durig the year
Bridgeport Company's bank statement for the month ended January 31 showed a balance per bank of $34,728. The company's Cash balance at January 31 was $16,398. Other information is as follows: 1. 2. 3. 4. 5. 6. 7. Cash receipts for January were $87,679, of which $5,295 was outstanding at January 31. The bank statement shows a debit memorandum for $135 for cheque printing charges. Cheque no. 119 payable to Sunland Company was recorded in the general journal and cleared the bank for $343. A review of the Accounts Payable subsidiary ledger shows a $131 credit balance in the account of Sunland Company and that the payment to it should have been for $474. The total amount of cheques written during January was $75,126, of which $5,979 was outstanding at January 31. Cheque No. 127 was correctly written and paid by the bank for $109. The general journal reflects an entry for cheque no. 127 as a debit to Accounts Payable and a credit to Cash for $190. The bank returned an NSF cheque from a…
Cash and accounts receivable for Adams Company are provided below: Prior Year Current Year Cash $50,799 Accounts receivable (net) 26,163 Based on this information, what is the amount and percentage of increase or decrease that would be shown with horizontal analysis? Enter a decrease using a minus sign before the amount and the percentage. Account Dollar Change Percent Change Cash Accounts Receivable $41,300 45,900
A company reported the following information: Accounts receivable, December 31, 2023: $122,000 Accounts receivable, December 31, 2022: $113,000 Sales (all on credit) for 2023: $850,000 Accounts receivable, December 31, 2023 $122,000 Accounts receivable, December 31, 2022 113,000 Sales (all on credit) for 2023 850,000 How much cash was collected from customers during 2023?
The following items appeared on the financial statements of Washington Company. Line Item Description Amount Accounts receivable, January 1 $13,395 Accounts receivable, December 31 6,901 Accounts payable, January 1 5,645 Accounts payable, December 31 8,721 Inventory, January 1 6,686 Inventory, December 31 16,260 Sales 73,071 Cost of goods sold 34,443 Washington Company uses the direct method to report cash flows from (used for) operating activities. Assume that all accounts payable are owed to merchandise suppliers. Cash payments for merchandise were