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.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
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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
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.

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