JT Engineering's current asset information is shown here. If JT's current liabilities are $300,000, what isJT's current ratio and what is its acid-test ratio? Round each ratio to the nearest hundredth.Current AssetsCash$ 9.000Short-term investments89.000Accounts receivable76.000InventoryPrepaid expenses130,00040,000Total current assets$344,000The current ratio is 1.15 times and the acid-test ratio is 0.58 times.The current ratio is 0.58 times and the acid-test ratio is 1.01 times.The current ratio is 0.58 times and the acid-test ratio is 1.15 times.The current ratio is 1.65 times and the acid-test ratio is 0.71 times.

Lets understand the basis. Current ratio compares the current asset with current liabilities.…

JT Engineering's current asset information is shown here. If JT's current liabilities are $300,000, what is JT's current ratio and what is its acid-test ratio? Round each ratio to the nearest hundredth. Current Assets Cash $ 9,000 Short-term investments 89.000 Accounts receivable 76.000 Inventory Prepaid expenses 130.000 40,000 $344,000 Total current assets The current ratio is 1.15 times and the acid-test ratio is 0.58 times. The current ratio is 0.58 times and the acid-test ratio is 1.01 times. The current ratio is 0.58 times and the acid-test ratio is 1.15 times. The current ratio is 1.65 times and the acid-test ratio is 0.71 times.

JT Engineering's current asset information is shown here. If JT's current liabilities are $300,000, what is JT's current ratio and what is its acid-test ratio? Round each ratio to the nearest hundredth. Current Assets Cash $ 9,000 Short-term investments 89.000 Accounts receivable 76.000 Inventory Prepaid expenses 130.000 40,000 $344,000 Total current assets The current ratio is 1.15 times and the acid-test ratio is 0.58 times. The current ratio is 0.58 times and the acid-test ratio is 1.01 times. The current ratio is 0.58 times and the acid-test ratio is 1.15 times. The current ratio is 1.65 times and the acid-test ratio is 0.71 times.

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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Question

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JT Engineering's current asset information is shown here. If JT's current liabilities are $300,000, what is
JT's current ratio and what is its acid-test ratio? Round each ratio to the nearest hundredth.
Current Assets
Cash
$ 9.000
Short-term investments
89.000
Accounts receivable
76.000
Inventory
Prepaid expenses
130,000
40,000
Total current assets
$344,000
The current ratio is 1.15 times and the acid-test ratio is 0.58 times.
The current ratio is 0.58 times and the acid-test ratio is 1.01 times.
The current ratio is 0.58 times and the acid-test ratio is 1.15 times.
The current ratio is 1.65 times and the acid-test ratio is 0.71 times.

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