Exercise 4-14 Computing and analyzing acid-test and current ratlos LO A1 Case Y Cash Short-term investments Current receivables Inventory Prepaid expenses Total current assets Current liabilities Case X Case X $2,000 $ 110 50 0 Case Y Case z Compute the current ratio and acid-test ratio for each of the following separate cases. Case X Case Y Case Z 350 470 700 2,600 2,420 4,230 200 500 900 $5,200 $3,500 $7,410 $2,000 $1,000 $3,800 Choose Numerator: 1 1 1 Cane $1,000 580 1 1 1 Acid-Test Ratio Choose Denominator: W = to 1 to 1 to 1 Acid-Test Ratio Acid-test ratio to 1 to 1 to 1
Exercise 4-14 Computing and analyzing acid-test and current ratlos LO A1 Case Y Cash Short-term investments Current receivables Inventory Prepaid expenses Total current assets Current liabilities Case X Case X $2,000 $ 110 50 0 Case Y Case z Compute the current ratio and acid-test ratio for each of the following separate cases. Case X Case Y Case Z 350 470 700 2,600 2,420 4,230 200 500 900 $5,200 $3,500 $7,410 $2,000 $1,000 $3,800 Choose Numerator: 1 1 1 Cane $1,000 580 1 1 1 Acid-Test Ratio Choose Denominator: W = to 1 to 1 to 1 Acid-Test Ratio Acid-test ratio to 1 to 1 to 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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
Transcribed Image Text:Exercise 4-14 Computing and analyzing acid-test and current ratios LO A1
Case
Y
Cash
Short-term
investments
Current
Case
X
$2,000 $ 110
50
0
Case
X
Case
Y
Case
2
receivables
Inventory
Prepaid
expenses
Total current $5,200 $3,500 $7,410
assets
Current
$2,000 $1,000 $3,800
liabilities
Case
X
Case
Y
Case
2
350
470
700
2,600 2,420 4,230
200
500 900
Compute the current ratio and acid-test ratio for each of the following separate cases.
Choose
Numerator:
1
Cane
$1,000
580
1
1
1
1
1
Acid-Test Ratio
Choose Denominator:
to 1
to 1
to 1
Acid-Test
Ratio
Acid-test ratio
to 1
to 1
to 1
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