Problem 7 Comp WORKING CAPITAL, CURRENT RATIO, AND QUICK RATIO. Charles Corporation's balance sheet at December 31, 20X7, shows the following: Current assets $4.000 Cash 8.000 Marketable securities 100.000 Accounts receivable 120,000 Inventories 1.000 Prepaid expenses Total current assets S233.000 Current liabilities Notes payable $5.000 150.000 Accounts payable Accrued expenses 20.000 Income taxes payable 1.000 Total current liabilities $176.000 Long-term liabilities S340.000 Requirement: Determine the following: a. net working capital; b. current ratio; and c. quíck ratio.
Problem 7 Comp WORKING CAPITAL, CURRENT RATIO, AND QUICK RATIO. Charles Corporation's balance sheet at December 31, 20X7, shows the following: Current assets $4.000 Cash 8.000 Marketable securities 100.000 Accounts receivable 120,000 Inventories 1.000 Prepaid expenses Total current assets S233.000 Current liabilities Notes payable $5.000 150.000 Accounts payable Accrued expenses 20.000 Income taxes payable 1.000 Total current liabilities $176.000 Long-term liabilities S340.000 Requirement: Determine the following: a. net working capital; b. current ratio; and c. quíck ratio.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Problem 7
NET WORKING CAPITAL, CURRENT RATIO, AND QUICK RATIO. Charles
Corporation's balance sheet at December 31, 20X7, shows the following:
Current assets
$4.000
Cash
8.000
Marketable securities
100.000
Accounts receivable
120.000
Inventories
1.000
Prepaid expenses
Total current assets
S233.000
Current liabilities
Notes payable
$5.000
150.000
Accounts payable
Accrued expenses
20.000
Income taxes payable
1.000
Total current liabilities
$176.000
Long-term liabilities
S340.000
Requirement:
Determine the following: a. net working capital; b. current ratio; and c. qguick ratio.
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