Pritchett Company reported the following year-end data:CashShort-term investmentsAccounts receivable (current)InventoryPrepaid (current) assetsTotal current 1iabilities$ 20, 1008, 50013,40024, 0006,80028, 000Compute the (a) current ratio and ( acid-test ratio.Complete this question by entering your answers in the tabs below.Currlat Ratio Acid Test RatioCompute the current ratio.Current RatioCurrent RatioNumerator:Denominator:Current assetsCurrent liabilitiesCurrent ratio72.800%2428,0002.6 to 1%3Acid Test Ratio>

Name: Pritchett Company reported the following year-end data:CashShort-term
Uploaded: 2022-11-18T00:26:54.000Z
Channel: Bartleby
Description: Pritchett Company reported the following year-end data:CashShort-term investmentsAccounts receivable (current)InventoryPrepaid (current) assetsTotal current 1iabilities$ 20, 1008, 50013,40024, 0006,80028, 000Compute the (a) current ratio and ( acid-

The current ratio is calculated by dividing the current assets by the current liabilities of the…

Business

Accounting

Pritchett Company reported the followtng year-end data: $ 20,100 8, 500 13,400 24,000 6,800 28,000 Cash Short-tere investsents Accounts receivable (current) Inventory Prepaid (current) assets Total current liabilities Compute the (a current ratio and (b acid-test ratio.

Pritchett Company reported the followtng year-end data: $ 20,100 8, 500 13,400 24,000 6,800 28,000 Cash Short-tere investsents Accounts receivable (current) Inventory Prepaid (current) assets Total current liabilities Compute the (a current ratio and (b acid-test ratio.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net…

A: Solution 1a: Current Ratio Choose Numerator / Choose Denominator = Current Ratio…

Q: The following financial information relates to HGR Co: Statement of financial position at the…

A: The question is related to the Ratio Analysis. The Short term solvency ratio measures the short term…

Q: Review of the financial statements revealed the following for Cullumber Inc.: sales $1256000, net…

A: The common-size statements are prepared by the entities to analyze the percent variation in the…

Q: Using the fiscal year end 2019 annual report for General Mills, Inc. and the figures from the 2017…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: The following items are reported on a company's balance sheet: Cash $248,600 Marketable securities…

A: Current Ratio and Quick Ratio are the liquidity ratios which test if the company is in liquid state…

Q: Given the following information, compute the current and quick ratios: Cash $ 90,000 Accounts…

A: Liquidity ratios: Liquidity means that the ability of the business to pay its short term liabilities…

Q: Accounts receivable Inventory Total assets . Selected financial ratios computed from the statements…

A: Current Ratio / Quick Ratio Current Ratio - Current Asset / Current Liability This Ratio suggest…

Q: Pritchett Company reported the following year-end data: Cash $ 20,000 Short-term investments…

A: Current ratio and acid-test ratio are the measures that are determined by the entity to know its…

Q: (Entries for Zero-Interest-Bearing Debt) On January 1, 2014, Fisher Company makes the two following…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Solve the following: The financial statements of Iowa Mining and Manufacturing Company (3M) report…

A: The accounts receivable turnover ratio is an accounting calculation used to measure how effectively…

Q: Using the fiscal year end 2020 annual report for General Mills, Inc. and the figures from the 2020…

A: Ratio analysis is a quantitative method of gaining insight into a company's liquidity, operational…

Q: Tabor Company has just prepared the following comparative annual financial statements for the…

A: Total Asset Turnover Ratio :— It is calculated by dividing net sales by average total assets.…

Q: Using these data from the comparative balance sheets of Wildhorse Co., perform horizontal analysis.…

A: Horizontal analysis is the way to calculate the variance from the different year by year to show an…

Q: Pritchett Company reported the following year-end data: Cash Short-term investments Accounts…

A: The ratio analysis helps to analyze the financial statements of the business on the basis of the…

Q: Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net…

A: Since you have specifically asked for 'acid-test ratio', we are answering the same for you. Acid…

Q: Accounts and notes receivable (net) 320,000 Inventories 700,000 Prepaid expenses 40,000 Accounts…

A: ''Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: E9-6 Current Position Analysis Obj. 3 The following data were taken from the comparative balance…

A: WORKING CAPITAL Working Capital is Measure Companies Liquidity & Short Term Financial Health.…

Q: Calculate the current ratio. fill in the blank 1 2. Calculate the quick ratio (acid-test ratio).…

A: The calculation of Current Ratio and Quick Ratio ( Acid - test Ratio) is shown hereunder : Given,…

Q: Suppose these selected condensed data are taken from recent balance sheets of Bob Evans Farms (in…

A: The current ratio measures the organization's ability to meet the short-term liabilities due within…

Q: Pritchett Co. reported the following year-end data: Cash Short-tere investments Accounts recefvable…

A: Acid Test Ratio = ( Cash + Short Term investment + Current Receivables ) / Current Liabilities

Q: Use the following information to complete the Financial Statements a. Average collection period of…

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: Calculate the quick assets (in $) and acid test ratio for the given company. Round ratios to the…

A: The current ratio and acid test ratio are both part of the liquidity ratio. It indicates that the…

Q: credit. Assets Cash Accounts receivable Inventory Plant and equipment Total assets REVOLUTION…

A: A ratio is a mathematical relationship between two variables. The investor can evaluate the…

Q: Refer to the 10-K for Abercrombie & Fitch. Required: 1. What does the company report for the…

A: 1. **Determine the Current Year's Values**: - Before making projections for the next fiscal year,…

Question

100%

Practice Pack

OFFON

Pritchett Company reported the following year-end data:
Cash
Short-term investments
Accounts receivable (current)
Inventory
Prepaid (current) assets
Total current 1iabilities
$ 20, 100
8, 500
13,400
24, 000
6,800
28, 000
Compute the (a) current ratio and ( acid-test ratio.
Complete this question by entering your answers in the tabs below.
Currlat Ratio Acid Test Ratio
Compute the current ratio.
Current Ratio
Current Ratio
Numerator:
Denominator:
Current assets
Current liabilities
Current ratio
72.800
%24
28,000
2.6 to 1
%3
Acid Test Ratio>

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

Includes step-by-step video

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Learn your way

Includes step-by-step video

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Don't give answer in image format
Compute the current ratio and acid-test ratio for each of the following separate cases. (Round ratios to two decimals.) Which company situation is in the best position to meet short-term obligations? Explain.
Show the current ratio with formulas
Given the data in the following table, accounts receivable in 2023 was…
please step by step solution.
Current position analysis the following data were taken from the balance sheet of Nilo company at the end of the two recent Fisher years; Current assets: Cash Marketable securities Account and note receivable (net) Inventories Prepaid expenses Total Current assets Current liabilities Account and notes payable ( short-term) Accrued liabilities Total Current liabilities Current year $417,000 cash 483,100 Marketable securities 197,700 acct not receivable ( net) 845,500 inventory 435,500 prepaid 2,379,000 Total Current assets Previous year $339,200 cash 381,600 Marketable securities 127,200 access note receivable ( net) 614,300 inventory 392,700 prepaid expenses 1,855,000 Total Current assets Current year Current liabilities Short term $353,800 Accrued liabilities 256,200 Total Current liabilities $610,000 Previous year Short term $371,000 Accrued liabilities 159,000 Total Current liabilities $530,000 A. Determine for each year 1 capital, 2 the current ratio,…
8. Compute the acid-test (quick ratio) ratio using the following data: highly liquid assets cash, AR, ST investment A) B) C) D) 1.15 1.24 1.33 1.86 Answer: B Cash Inventory Accounts Receivable Current ratio $115,000 105,000 55,000 2.00
Calculate the dividend payout ratio.
s
Examine the selected data over the 5-year period as shown in the table below for Dumbledore Ltd. Item Sales Cost of sales EBIT Interest NPAT Current assets Total assets current liabilities Total liabilities Equity Gross margin Interest coverage Current ratio 2021 $m 286.41 180.03 51.18 37.07 35.13 43.85 226.18 55.99 98.99 127.19 0.37 1.38 0.78 Year 2020 $m 280.80 166.69 51.08 33.70 35.10 43.20 221.75 53.58 91.66 130.09 0.41 1.52 0.81 2019 $m 275.29 154.35 50.98 30.64 35.06 42.56 217.40 51.27 84.87 132.53 0.44 1.66 0.89 2018 $m 269.89 142.91 50.88 27.85 35.03 41.93 213.13 49.06 78.58 134.56 0.47 1.83 U.OJ 2017 $m 264.60 134.19 49.88 25.32 34.51 41.31 206.93 47.40 74.48 132.44 0.49 1.97 0.87 2016 $m 252.00 126.00 48.90 24.00 34.00 40.70 200.90 45.80 70.60 130.30 0.50 2.04 0.89
PreviousBalance AnnualPercentageRate (APR)(as a %) MonthlyPeriodicRate FinanceCharge(in $) Purchasesand CashAdvances PaymentsandCredits NewBalance(in $) $2,490.00 % 1 1 4 % $ $1,374.98 $300.00 $
For Financial year 2021: Current ratio = Current assets / Current liabilities = 43.133 / 29.613 = 1.46 (2.d.p) Debt-to-equity = Total liabilities / Total equity = (29.613 + 25.382) / 47.069 = 1.17 (2.d.p) Return on total assets = Net profit / Average total assets = (-11.195) / 101.964 = -0.11 (2.d.p) Profit margin ratio = Net profit / Net sales = (-11.195) / 81.79 = -0.14 (2.d.p) Debt-to-asset = Total liabilities / Total assets = (29.613 + 25.382) / 101.964 = 0.54 (2.d.p) Cash flow on total assets = Net cash flow from operating activities / Average total assets = 4.717 / 101.964 = 0.05 (2.d.p) For Financial year 2022: Current ratio = Current assets / Current liabilities = 49.476 / 32.754 = 1.51 (2.d.p) Debt-to-equity = Total liabilities / Total equity = (32.754 + 27.625) / 46.732 = 1.29 (2.d.p) Return on total assets = Net profit / Average total assets = (-0.336) / 107.111 = -0.003 (3.d.p) Profit margin ratio = Net profit / Net sales = (-0.336) / 115.56 = -0.003 (3.d.p) Debt-to-asset…