Mayfield Corporation has provided the following financial data: Balance Sheet Assets Current assets: Cash $ 228,000 Accounts receivable, net 241,000 Inventory 204,000 Prepaid expenses 11,000 Total current assets 684,000 Plant and equipment, net 670,000 Total assets $ 1,354,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 162,000 Accrued liabilities 53,000 Notes payable, short term 46,000 Total current liabilities 261,000 Bonds payable 102,000 Total liabilities 363,000 Stockholders' equity: Common stock, $4 par value 362,000 Additional paid-in capital 81,000 Retained earnings 548,000 Total stockholders' equity 991,000 Total liabilities & stockholders' equity $ 1,354,000 The company’s acid-test (quick) ratio is closest to:
Mayfield Corporation has provided the following financial data: Balance Sheet Assets Current assets: Cash $ 228,000 Accounts receivable, net 241,000 Inventory 204,000 Prepaid expenses 11,000 Total current assets 684,000 Plant and equipment, net 670,000 Total assets $ 1,354,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 162,000 Accrued liabilities 53,000 Notes payable, short term 46,000 Total current liabilities 261,000 Bonds payable 102,000 Total liabilities 363,000 Stockholders' equity: Common stock, $4 par value 362,000 Additional paid-in capital 81,000 Retained earnings 548,000 Total stockholders' equity 991,000 Total liabilities & stockholders' equity $ 1,354,000 The company’s acid-test (quick) ratio is closest to:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Mayfield Corporation has provided the following financial data:
| Assets | |||
| Current assets: | |||
| Cash | $ | 228,000 | |
| 241,000 | |||
| Inventory | 204,000 | ||
| Prepaid expenses | 11,000 | ||
| Total current assets | 684,000 | ||
| Plant and equipment, net | 670,000 | ||
| Total assets | $ | 1,354,000 | |
| Liabilities and |
|||
| Current liabilities: | |||
| Accounts payable | $ | 162,000 | |
| Accrued liabilities | 53,000 | ||
| Notes payable, short term | 46,000 | ||
| Total current liabilities | 261,000 | ||
| Bonds payable | 102,000 | ||
| Total liabilities | 363,000 | ||
| Stockholders' equity: | |||
| Common stock, $4 par value | 362,000 | ||
| Additional paid-in capital | 81,000 | ||
| 548,000 | |||
| Total stockholders' equity | 991,000 | ||
| Total liabilities & stockholders' equity | $ | 1,354,000 | |
The company’s acid-test (quick) ratio is closest to:
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