Pritchett Company reported the following year-end data: Cash Short-term investments Accounts receivable (current) Inventory Prepaid (current) assets Total current liabilities Compute the (a) current ratio and (b) acid-test ratio. $ 15,000 5,000 8,000 20,000 6,000 20,000 Complete this question by entering your answers in the tabs below. Current Ratio Acid Test Ratio Compute the current ratio. Current Ratio Numerator: Denominator: = Current Ratio Current assets Current liabilities = Current ratio = 0 to 1 Compute the acid-test ratio. + + Numerator: + + Acid-Test Ratio Denominator: = II = Acid-Test Ratio Acid-test ratio 0 to 1
Pritchett Company reported the following year-end data: Cash Short-term investments Accounts receivable (current) Inventory Prepaid (current) assets Total current liabilities Compute the (a) current ratio and (b) acid-test ratio. $ 15,000 5,000 8,000 20,000 6,000 20,000 Complete this question by entering your answers in the tabs below. Current Ratio Acid Test Ratio Compute the current ratio. Current Ratio Numerator: Denominator: = Current Ratio Current assets Current liabilities = Current ratio = 0 to 1 Compute the acid-test ratio. + + Numerator: + + Acid-Test Ratio Denominator: = II = Acid-Test Ratio Acid-test ratio 0 to 1
Chapter1: Financial Statements And Business Decisions
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