Pritchett Company reported the following year-end data: Cash $ 20,000 Short-term investments 8,400 Accounts receivable (current) 14,800 Inventory 17,600 Prepaid (current) assets 6,700 Total current liabilities 27,000 Compute the (a) current ratio and (b) acid-test ratio.
Pritchett Company reported the following year-end data: Cash $ 20,000 Short-term investments 8,400 Accounts receivable (current) 14,800 Inventory 17,600 Prepaid (current) assets 6,700 Total current liabilities 27,000 Compute the (a) current ratio and (b) acid-test ratio.
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 19P
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Pritchett Company reported the following year-end data:
Cash | $ 20,000 |
---|---|
Short-term investments | 8,400 |
14,800 | |
Inventory | 17,600 |
Prepaid (current) assets | 6,700 |
Total current liabilities | 27,000 |
Compute the (a)
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