Pritchett Company reported the following year-end data: Cash Short-term investments Accounts receivable (current) Inventory Prepaid (current) assets Total current liabilities $ 15,000 5,000 8,000 20,000 6,000 20,000 Compute the (a) current ratio and (b) acid-test ratio. Current Ratio Acid Test Ratio Complete this question by entering your answers in the tabs below.
Pritchett Company reported the following year-end data: Cash Short-term investments Accounts receivable (current) Inventory Prepaid (current) assets Total current liabilities $ 15,000 5,000 8,000 20,000 6,000 20,000 Compute the (a) current ratio and (b) acid-test ratio. Current Ratio Acid Test Ratio Complete this question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please answer do not image.
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Current Ratio Acid Test Ratio
Compute the acid-test ratio.
Numerator:
+
+
Acid-Test Ratio
< Current Ratio
I
I
1
Denominator:
Acid Test Ratio >
=
=
=
Acid-Test Ratio
Acid-test ratio
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.
Complete this question by entering your answers in the tabs below.
Current Ratio Acid Test Ratio
Compute the current ratio.
Numerator:
$ 15,000
5,000
8,000
20,000
6,000
20,000
1
1
1
Current Ratio
Denominator:
= Current Ratio
Current ratio
=
=
Current Ratio
to 1
Acid Test Ratio >
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