Answered: Lakewood Enterprises has a current…

Lakewood Enterprises has a current ratio of 5:1 and an acid-test ratio of 2:1. If the inventories and prepaid items amount to $450,000, what is the amount of current liabilities?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 15MCQ: Hummel Inc. has $30,000 in current assets and $15,000 in current liabilities. What is Hummels...

See similar textbooks

Related questions

Q: General Account

A: Concept of Accrual Principle:The accrual principle is a fundamental accounting concept that requires…

Q: General Accounting Question please answer

A: Step 1: Define EOQ (Economic Order Quantity)The Economic Order Quantity (EOQ) is the order quantity…

Q: what would net income be if the company used variable costing?

A: The question requires us to calculate net income under variable costing given that net income under…

Q: Compute the firm's gross profit margin?

A: Step 1: Define Gross MarginGross profit margin refers to the profit made by a company before the…

Q: General Accounting

A: Since NoGrowth Corporation pays a constant dividend forever, we can use the Gordon Growth Model…

Q: These are selected account balances on December 31, 2025. Land $180,000 Land (held for future use)…

A: Explanation of Property, Plant, and Equipment (PPE): PPE represents long-term tangible assets that a…

Q: Give me correct answer this general accounting question

A: Step 1: Define Stockholders' EquityStockholders' equity represents the residual interest in a…

Q: Accounting 25

A: Explanation of Return on Assets (ROA):Return on Assets (ROA) is a profitability metric that measures…

Q: Find out EPS

A: Step 1: Given Value for calculation Net Income = ni = $790,000Number of Share = n = 55,300 Step 2:…

Q: What is the total stockholder's equity for this general accounting question?

A: Step 1: Calculate Total Assets Step 2: Calculate Total Liabilities Step 3: Calculate Stockholders'…

Q: The payment of the owner's personal expenses from the business's checkbook should be recorded with a…

A: The correct answer is:C. withdrawals. ExplanationWhen the owner uses business funds to pay for…

Q: Pina Company reports pre-tax financial income of $66,000 for 2017. The following items cause taxable…

A: To calculate the taxable income for 2017, we adjust the pre-tax financial income reported in the…

Q: Provide correct answer general Accounting

A: Definition of Gross ProfitGross profit is the amount of revenue remaining after deducting the cost…

Q: General accounting

A: Calculation of Contribution per unit when 20,000 units are soldContribution per unit = Contribution…

Q: Need answer the accounting question

A: Step 1: Define Net Cash Provided by Operating ActivitiesNet Cash Provided by Operating Activities…

Q: I need Solution

A: 1. Classification of Activities in the Cash Flow Statement:The cash flow statement is divided into…

Q: What amount must Mr. Hines include in his income for 2016?

A: Detailed explanation:Mr. Hines must include $2,100 in his income for 2016. According to IRS…

Q: Company's estimated cost of goods sold?

A: Explanation of Beginning Inventory: Beginning inventory represents the value of goods on hand at the…

Q: ? Solution

A: Explanation of Markup:Markup refers to the percentage added to the cost price of a product to…

Q: What is the absorption cost per unit on these general accounting question?

A: Step 1: Define Absorption CostingAbsorption costing is a costing method that includes all variable…

Q: Hi expert please give me answer general accounting

A: Step 1: Definition of Interest RevenueInterest revenue represents the income earned from lending…

Q: Hello tutor provide correct answer

A: Step 1: Direct Labor BudgetA company's direct labor budget is used to calculate the total direct…

Q: Question: Quill Corp. shows the following information on its 2007 income statement: Sales $145,000…

A: I hope you are finding the material engaging and informative. If you have any questions or…

Q: Please need help with this accounting problem

A: Step 1: Define Key RatiosProfit Margin is the ratio of net income to sales. It measures how much…

Q: Kindly help me with general accounting question

A: Step 1: Define PurchasesPurchases refer to the activity of acquiring goods and services with the…

Q: GENERAL ACCOUNTING 2.4

A: Explanation of Equivalent Units for Materials:Equivalent units for materials refer to the number of…

Q: What amount should be recorded for the land ?

A: Step 1: Definition of Allocated Asset CostWhen a group of assets is purchased together for a lump…

Q: Provide general accounting soluutions

A: Key Information ProvidedTransaction Details:Scanlon Company sells 1,000 widgets to Avon Inc. for $14…

Q: A company buys equipment for $54,000 with a salvage value of $5,000 and an expected useful life of…

A: Explanation of Straight-Line DepreciationStraight-line depreciation is a method of systematically…

Q: Hello tutor please help me this question

A: Step 1: Define Taxable IncomeTaxable income refers to the net income of an individual or a business…

Q: General Account

A: According to IFRS provisions, if plan assets are insufficient to cover projected benefit obligations…

Q: What is the percentage contribution margin solve this accounting questions

A: Step 1: Definition of Contribution Margin PercentageThe Contribution Margin Percentage represents…

Q: Need help with this accounting questions

A: Step 1: Definition of Fair Value AllocationWhen assets are purchased as a group, the purchase price…

Q: Need help this question general accounting

A: Step 1: Define GoodwillThere are some assets that are not physical in nature. These assets are…

Q: Do fast answer of this accounting questions

A: Step 1: Definition of Degree of Operating Leverage (DOL)The Degree of Operating Leverage (DOL)…

Q: The predetermined overhead rate would be ?

A: Step 1: Definition of Predetermined Overhead RateThe predetermined overhead rate is an estimated…

Q: Quick answer of this accounting questions

A: Step 1: Definition of Accounts Receivable TurnoverAccounts Receivable Turnover measures how many…

Q: Help

A: Explanation of Revenue:Revenue is the total income a business earns from its core operations by…

Q: 10. All of the following are exclusions from gross income EXCEPT: A. Scholarships B. Gifts C.…

A: The correct answer is:C. Dividend Income Explanation:Gross income includes all income from whatever…

Q: If a company has average accounts receivable of $90,000 and annual sales of $840,000, what is the…

A: Explanation of Days Sales Outstanding (DSO):Days Sales Outstanding (DSO) is a financial metric that…

Q: Contribution margin ratio

A: Step 1: Definition of Contribution Margin RatioThe Contribution Margin Ratio is the percentage of…

Q: Provide correct answer with correct calculation for this accounting question

A: Step 1: Define Adjusting Journal Entry for InterestAn adjusting journal entry for interest is…

Q: Don't use ai given answer accounting questions

A: We can solve like this also a).Calculation of total assets turnover:Total assets turnover=Sales /…

Q: Determine the equivalent units in process for direct materials and conversion costs

A: Step 1: Key InformationDirect materials placed into the process: 180,000 liters.Beginning…

Q: Hii expert please given correct answer general Accounting

A: Step 1: Define Gross ProfitGross profit is a financial matrix that refers to the total amount of…

Q: I don't need ai answer general accounting question

A: Approach to solving the question: For better clarity of the solution, I have provided both the…

Q: What is the amount of gain

A: Step 1: Definition of Gain on SaleThe gain on sale of property is calculated as the difference…

Q: A company manufactures custom furniture and uses a process costing system. During the month of…

A: Concept of Process Costing: Process costing is a cost accounting system used ehwn identical or…

Q: The operating income using variable costing is: $_____. Financial Account

A: Step 1: Identify Relevant DataUnits Produced: 10,000Units Sold: 8,000Selling Price per Unit:…

Q: Calculate the return on assets for the period

A: Step 1: Definition of Return on Assets (ROA)Return on Assets (ROA) is a financial ratio that…

Question

What is the amount of current liabilities on these general accounting question?

Lakewood Enterprises has a current ratio of 5:1
and an acid-test ratio of 2:1. If the inventories and
prepaid items amount to $450,000, what is the
amount of current liabilities?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

provide correct answer. sub. general account.
The current ratio of a company is 8:1 and its acid-test ratio is 1:1. If the inventories and prepaid items amount to $633,000, what is the amount of current liabilities?
Kingery Corporation has current assets of $1,800,000 and current liabilities of $750,000. If they pay $250,000 of their accounts payable, what will their new current ration be, given that the current ratio is current assets/current liabilities?
What is the amount of current liabilities?
What is the amount of current liabilities on these general accounting question?
The current ratio of a company is 8:1 and its acid-test ratio is 1:1. If the inventories and prepaid items amount to $633,000, what is the amount of current liabilities?(accounting Problem)
Hummel Inc. has $30,000 in current assets and $15,000 in current liabilities. What is Hummels current ratio? a. 3 c. 1 b. 2 d. 0.5
General Accounting
Answer each of the questions in the following unrelated situations.(a) The current ratio of a company is 6:1 and its acid-test ratio is 1:1. If the inventories and prepaid items amount to $548,000, what is the amount of current liabilities?
Cotuit company's current liabilities must be
ABC has the following current assets: cash, $102 million; receivables, $94 million; inventory, $182 million; other current assets, $18 million. ABC also has the following liabilities: accounts payable, $98 million; long-term debt, $23 million. Based on these amounts, what is the acid-test ratio ? Numeric Response:?????????
Love Company has current assets of P400,000 including inventory of P160,000 and a quick ratio of 2:1. Based on available data, how much is the current liabilities?