I can not figure out the acid-test ratio; help is greatly appreciated! Matthias Medical manufactures hospital beds and other institutional furniture. The company’s comparative balance sheet and income statement for 2019 and 2020 follow. Matthias Medical Comparative Balance Sheet As of December 31 2020 2019 Assets Current assets Cash $397,220 $417,400 Accounts receivable, net 906,800 776,400 Inventory 743,000 681,000 Other current assets 381,300 247,000 Total current assets 2,428,320 2,121,800 Property, plant, & equipment, net 8,678,000 8,440,100 Total assets $11,106,320 $10,561,900 Liabilities and Stockholders’ Equity Current liabilities $2,934,700 $2,846,000 Long-term debt 3,700,600 3,892,600 Total liabilities 6,635,300 6,738,600 Preferred stock, $5 par value 58,900 58,900 Common stock, $0.25 par value 104,600 103,800 Retained earnings 4,307,520 3,660,600 Total stockholders’ equity 4,471,020 3,823,300 Total liabilities and stockholders’ equity $11,106,320 $10,561,900 Matthias Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2020 2019 Sales revenue (all on account) $10,177,200 $9,613,900 Cost of goods sold 5,411,800 5,298,700 Gross profit 4,765,400 4,315,200 Operating expenses 2,899,900 2,634,100 Net operating income 1,865,500 1,681,100 Interest expense 300,300 308,600 Net income before taxes 1,565,200 1,372,500 Income taxes (30%) 469,560 411,750 Net income $1,095,640 $960,750 Dividends paid Preferred dividends 29,450 29,450 Common dividends 419,270 413,000 Total dividends paid 448,720 442,450 Net income retained 646,920 518,300 Retained earnings, beginning of year 3,660,600 3,142,300 Retained earnings, end of year $4,307,520 $3,660,600

I can not figure out the acid-test ratio; help is greatly appreciated! Matthias Medical manufactures hospital beds and other institutional furniture. The company’s comparative balance sheet and income statement for 2019 and 2020 follow. Matthias Medical Comparative Balance Sheet As of December 31 2020 2019 Assets Current assets Cash $397,220 $417,400 Accounts receivable, net 906,800 776,400 Inventory 743,000 681,000 Other current assets 381,300 247,000 Total current assets 2,428,320 2,121,800 Property, plant, & equipment, net 8,678,000 8,440,100 Total assets $11,106,320 $10,561,900 Liabilities and Stockholders’ Equity Current liabilities $2,934,700 $2,846,000 Long-term debt 3,700,600 3,892,600 Total liabilities 6,635,300 6,738,600 Preferred stock, $5 par value 58,900 58,900 Common stock, $0.25 par value 104,600 103,800 Retained earnings 4,307,520 3,660,600 Total stockholders’ equity 4,471,020 3,823,300 Total liabilities and stockholders’ equity $11,106,320 $10,561,900 Matthias Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2020 2019 Sales revenue (all on account) $10,177,200 $9,613,900 Cost of goods sold 5,411,800 5,298,700 Gross profit 4,765,400 4,315,200 Operating expenses 2,899,900 2,634,100 Net operating income 1,865,500 1,681,100 Interest expense 300,300 308,600 Net income before taxes 1,565,200 1,372,500 Income taxes (30%) 469,560 411,750 Net income $1,095,640 $960,750 Dividends paid Preferred dividends 29,450 29,450 Common dividends 419,270 413,000 Total dividends paid 448,720 442,450 Net income retained 646,920 518,300 Retained earnings, beginning of year 3,660,600 3,142,300 Retained earnings, end of year $4,307,520 $3,660,600

FINANCIAL ACCOUNTING

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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I can not figure out the acid-test ratio; help is greatly appreciated!

Matthias Medical manufactures hospital beds and other institutional furniture. The company’s comparative balance sheet and income statement for 2019 and 2020 follow.

Matthias Medical Comparative Balance Sheet As of December 31
	2020	2019
Assets
Current assets
Cash	$397,220	$417,400
Accounts receivable, net	906,800	776,400
Inventory	743,000	681,000
Other current assets	381,300	247,000
Total current assets	2,428,320	2,121,800
Property, plant, & equipment, net	8,678,000	8,440,100
Total assets	$11,106,320	$10,561,900

Liabilities and Stockholders’ Equity
Current liabilities	$2,934,700	$2,846,000
Long-term debt	3,700,600	3,892,600
Total liabilities	6,635,300	6,738,600
Preferred stock, $5 par value	58,900	58,900
Common stock, $0.25 par value	104,600	103,800
Retained earnings	4,307,520	3,660,600
Total stockholders’ equity	4,471,020	3,823,300
Total liabilities and stockholders’ equity	$11,106,320	$10,561,900

Matthias Medical Comparative Income Statement and Statement of Retained Earnings For the Year
	2020	2019
Sales revenue (all on account)	$10,177,200	$9,613,900
Cost of goods sold	5,411,800	5,298,700
Gross profit	4,765,400	4,315,200
Operating expenses	2,899,900	2,634,100
Net operating income	1,865,500	1,681,100
Interest expense	300,300	308,600
Net income before taxes	1,565,200	1,372,500
Income taxes (30%)	469,560	411,750
Net income	$1,095,640	$960,750
Dividends paid
Preferred dividends	29,450	29,450
Common dividends	419,270	413,000
Total dividends paid	448,720	442,450
Net income retained	646,920	518,300
Retained earnings, beginning of year	3,660,600	3,142,300
Retained earnings, end of year	$4,307,520	$3,660,600

Calculate the following liquidity ratios for 2020. (If working capital is negative then enter with a negative sign preceding
the number or parentheses, e.g. -15,000 or (15,000). Round all answers except working capital to 2 decimal places,
e.g. 2.55.)
-506380
a. Working capital
83
b. Current ratio
.57
C. Acid-test ratio
12.09
d. Accounts receivable turnover
times
%24

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