Pritchett Company reported the following year-end data: Cash $ 15,000 Short-term investments 5,000 Accounts receivable (current) 8,000 Inventory 20,000 Prepaid (current) assets 6,000 Total current liabilities 20,000 Compute the (a) current ratio and (b) acid-test ratio. Compute the current ratio.
Pritchett Company reported the following year-end data: Cash $ 15,000 Short-term investments 5,000 Accounts receivable (current) 8,000 Inventory 20,000 Prepaid (current) assets 6,000 Total current liabilities 20,000 Compute the (a) current ratio and (b) acid-test ratio. Compute the current ratio.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pritchett Company reported the following year-end data:
| Cash | $ 15,000 |
|---|---|
| Short-term investments | 5,000 |
| 8,000 | |
| Inventory | 20,000 |
| Prepaid (current) assets | 6,000 |
| Total current liabilities | 20,000 |
Compute the (a)
Compute the current ratio.
|
|
|
Compute the acid-test ratio.
|
|
|
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