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ELLA COMPANY Balance Sheet December 31 Assets Liabilitles $ 86,000 Current liabilities .... 76,000 Long-term liabilities...... Cash ... $124,000 Accounts receivable.... Merchandise inventory.. 122,000 Equity Prepaid insurance... Long-term investments.. Plant assets, net... Total assets.... 90,000 12,000 Common stock. 300,000 98,000 Retained earnings 316,000 436,000 $830,000 Total liailities and equity .. $830,000

ELLA COMPANY Balance Sheet December 31 Assets Liabilitles $ 86,000 Current liabilities .... 76,000 Long-term liabilities...... Cash ... $124,000 Accounts receivable.... Merchandise inventory.. 122,000 Equity Prepaid insurance... Long-term investments.. Plant assets, net... Total assets.... 90,000 12,000 Common stock. 300,000 98,000 Retained earnings 316,000 436,000 $830,000 Total liailities and equity .. $830,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is Ella Company’s acid-test ratio?
a. 2.39 d. 6.69
b. 0.69 e. 3.88
c. 1.31 

ELLA COMPANY Balance Sheet December 31 Assets Liabilitles $ 86,000 Current liabilities .... 76,000 Long-term liabilities...... Cash ... $124,000 Accounts receivable.... Merchandise inventory.. 122,000 Equity Prepaid insurance... Long-term investments.. Plant assets, net... Total assets.... 90,000 12,000 Common stock. 300,000 98,000 Retained earnings 316,000 436,000 $830,000 Total liailities and equity .. $830,000
Transcribed Image Text:ELLA COMPANY Balance Sheet December 31 Assets Liabilitles $ 86,000 Current liabilities .... 76,000 Long-term liabilities...... Cash ... $124,000 Accounts receivable.... Merchandise inventory.. 122,000 Equity Prepaid insurance... Long-term investments.. Plant assets, net... Total assets.... 90,000 12,000 Common stock. 300,000 98,000 Retained earnings 316,000 436,000 $830,000 Total liailities and equity .. $830,000
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