Lily Company had the following account totals as of December 31, 20X2. Cost of goods sold Accounts receivable Rent revenue Accounts payable Sales Inventory Bank Loan Payable (*) Cash $150,000 100,000 10,000 25,000 200,000 50,000 20,000 18,000 Retained earnings (beginning of year, January 1, 20X2) 80,000 Prepaid insurance (6-month insurance policy) Paid-in capital 15,000 38,000 Equipment 45,000 Unearned rent revenue (9-month contract) 5,000 (*) of the $20,000 bank loan payable, $3,000 will be repaid in 20X3. What is Lily Company's current ratio? a. 5.74 b. 6.14 c. 4.06 d. 5.90 e. 5-55

Lily Company had the following account totals as of December 31, 20X2. Cost of goods sold Accounts receivable Rent revenue Accounts payable Sales Inventory Bank Loan Payable () Cash $150,000 100,000 10,000 25,000 200,000 50,000 20,000 18,000 Retained earnings (beginning of year, January 1, 20X2) 80,000 Prepaid insurance (6-month insurance policy) Paid-in capital 15,000 38,000 Equipment 45,000 Unearned rent revenue (9-month contract) 5,000 () of the $20,000 bank loan payable, $3,000 will be repaid in 20X3. What is Lily Company's current ratio? a. 5.74 b. 6.14 c. 4.06 d. 5.90 e. 5-55

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....

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