Exercise 14.4 (Algo) Measures of Liquidity (LO14-4) Roy's Toys is a manufacturer of toys and other children's products. The following are selected items appearing in a recent balance sheet. Cash and short-term investments Receivables Inventories Prepaid expenses and other current assets Total current liabilities. Total liabilities Total stockholders' equity $45 155 79 37 134 200 345 Dollar amounts stated above are in millions. a-1. Using the information above, compute the amount of Roy's Toys quick assets. (Enter your answer in millions of dollars.) a-2. Using the information above, compute the amount of Roy's Toys total current assets. (Enter your answer in millions of dollars.) b-1. Compute for Roy's Toys the quick ratio. (Round your answer to 1 decimal place.) b-2. Compute for Roy's Toys the current ratio. (Round your answer to 1 decimal place.) b-3. Compute for Roy's Toys the dollar amount of working capital. (Enter your answer in millions of dollars.)
Exercise 14.4 (Algo) Measures of Liquidity (LO14-4) Roy's Toys is a manufacturer of toys and other children's products. The following are selected items appearing in a recent balance sheet. Cash and short-term investments Receivables Inventories Prepaid expenses and other current assets Total current liabilities. Total liabilities Total stockholders' equity $45 155 79 37 134 200 345 Dollar amounts stated above are in millions. a-1. Using the information above, compute the amount of Roy's Toys quick assets. (Enter your answer in millions of dollars.) a-2. Using the information above, compute the amount of Roy's Toys total current assets. (Enter your answer in millions of dollars.) b-1. Compute for Roy's Toys the quick ratio. (Round your answer to 1 decimal place.) b-2. Compute for Roy's Toys the current ratio. (Round your answer to 1 decimal place.) b-3. Compute for Roy's Toys the dollar amount of working capital. (Enter your answer in millions of dollars.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Exercise 14.4 (Algo) Measures of Liquidity (LO14-4)
Roy's Toys is a manufacturer of toys and other children's products. The following are selected items appearing in a recent balance
sheet.
Cash and short-term investments
Receivables
Inventories
Prepaid expenses and other current assets
Total current liabilities
Total liabilities
Total stockholders' equity
Dollar amounts stated above are in millions.
a-1. Using the Information above, compute the amount of Roy's Toys quick assets. (Enter your answer in millions of dollars.)
a-2. Using the Information above, compute the amount of Roy's Toys total current assets. (Enter your answer in millions of dollars.)
b-1. Compute for Roy's Toys the quick ratio. (Round your answer to 1 decimal place.)
a-1.
a-2.
b-1.
b-2
b-3.
b-2. Compute for Roy's Toys the current ratio. (Round your answer to 1 decimal place.)
b-3. Compute for Roy's Toys the dollar amount of working capital. (Enter your answer in millions of dollars.)
Quick assets
Total current assets
Quick ratio
Current ratio
Working capital
$45
155
79
37
134
mon
mi on
200
345
to 1
to 1
mi on
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