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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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