Pacific Industries has $18,000 in cash, $12,000 in marketable securities, $45,000 in accounts receivable, $52,000 in inventories, and $58,000 in current liabilities. The corporation's current assets consist of cash, marketable securities, accounts receivable, and inventory. Calculate the corporation's acid-test ratio.

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 11MCQ: Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital...
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Pacific Industries has $18,000 in cash, $12,000 in marketable securities, $45,000 in
accounts receivable, $52,000 in inventories, and $58,000 in current liabilities. The
corporation's current assets consist of cash, marketable securities, accounts
receivable, and inventory. Calculate the corporation's acid-test ratio.
Transcribed Image Text:Pacific Industries has $18,000 in cash, $12,000 in marketable securities, $45,000 in accounts receivable, $52,000 in inventories, and $58,000 in current liabilities. The corporation's current assets consist of cash, marketable securities, accounts receivable, and inventory. Calculate the corporation's acid-test ratio.
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