May I ask for an explanation and solution to the question for a better understanding. Thank you!At December 31, 2011, Rey's current ratio was: a. 1.50 to 1b. 1.75 to 1c. 2.06 to 1d. 3.10 to 1 Rey, Inc.SELECTED FINANCIAL DATADecember 31,20112010S 170,000 $ 90,000400,000CashAccounts receivable (net)Merchandise inventoryShort-term marketable securities450,000540,00080,000420,00040,0001,000,000 1,000,000Land and building (net)Mortgage payable currentportionAccounts payable and accruedliabilitiesShort-term notes payable60,00050,000240,000220,000100,000140,000Net credit sales totaled $3,000,000 and $2,000,000 for theyears ended December 31, 2011 and 2010, respectively.

Current Ratio : Current Ratio is a liquidity ratio that measures the company ability to pay short…

Answered: May I ask for an explanation and…

May I ask for an explanation and solution to the question for a better understanding. Thank you! At December 31, 2011, Rey's current ratio was: a. 1.50 to 1 b. 1.75 to 1 c. 2.06 to 1 d. 3.10 to 1

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.4.10P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

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Question

May I ask for an explanation and solution to the question for a better understanding. Thank you!

At December 31, 2011, Rey's current ratio was:

a. 1.50 to 1

b. 1.75 to 1

c. 2.06 to 1

d. 3.10 to 1

Rey, Inc.
SELECTED FINANCIAL DATA
December 31,
2011
2010
S 170,000 $ 90,000
400,000
Cash
Accounts receivable (net)
Merchandise inventory
Short-term marketable securities
450,000
540,000
80,000
420,000
40,000
1,000,000 1,000,000
Land and building (net)
Mortgage payable current
portion
Accounts payable and accrued
liabilities
Short-term notes payable
60,000
50,000
240,000
220,000
100,000
140,000
Net credit sales totaled $3,000,000 and $2,000,000 for the
years ended December 31, 2011 and 2010, respectively.

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