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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text: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>
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