Indigo Associates Inc. reports the following account balances for the year ending June 30, 2025: Accounts payable Accounts receivable Cash and cash equivalents Goodwill Inventory Notes payable (due 2028) Interest payable Notes payable (due.Jan. 2026) Property, plant, and equipment Accumulated depreciation Prepaid insurance Salaries and wages payable Bonds payable (a) $22,000 Current ratio 38,000 16,500 129,000 80,000 107,000 3,600 15,000 575,000 105,000 9,130 13,600 Compute the company's (a) current ratio and (b) debt to assets ratio. (Round current ratio to.2 decimal places, e.g. 1.55:1 and debt to assets ratio to 0 decimal place, e.g. 55%.) 335,000 :1
Indigo Associates Inc. reports the following account balances for the year ending June 30, 2025: Accounts payable Accounts receivable Cash and cash equivalents Goodwill Inventory Notes payable (due 2028) Interest payable Notes payable (due.Jan. 2026) Property, plant, and equipment Accumulated depreciation Prepaid insurance Salaries and wages payable Bonds payable (a) $22,000 Current ratio 38,000 16,500 129,000 80,000 107,000 3,600 15,000 575,000 105,000 9,130 13,600 Compute the company's (a) current ratio and (b) debt to assets ratio. (Round current ratio to.2 decimal places, e.g. 1.55:1 and debt to assets ratio to 0 decimal place, e.g. 55%.) 335,000 :1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Indigo Associates Inc. reports the following account balances for the year ending June 30, 2025:
Accounts payable
Accounts receivable
Cash and cash equivalents
Goodwill
Inventory
Notes payable (due 2028)
Interest payable
Notes payable (due. Jan. 2026)
Property, plant, and equipment
Accumulated depreciation
Prepaid insurance
Salaries and wages payable
Bonds payable
$22,000
(a) Current ratio
38,000
16,500
129,000
80,000
107,000
3,600
15,000
575,000
105,000
9,130
13,600
335,000
Compute the company's (a) current ratio and (b) debt to assets ratio. (Round current ratio to.2 decimal places, e.g. 1.55:1 and
debt to assets ratio to 0 decimal place, e.g. 55%.)
:1
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