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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
Transcribed Image Text: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
Transcribed Image Text:Compute the acid-test ratio. + + Numerator: + + Acid-Test Ratio Denominator: = II = Acid-Test Ratio Acid-test ratio 0 to 1
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