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Problem 7 NET WORKING Corporation's bala Lo Requirement: Determine the followi

Problem 7 NET WORKING Corporation's bala Lo Requirement: Determine the followi

FINANCIAL ACCOUNTING
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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Problem 7 NET WORKING CAPITAL, CURRENT RATIO, Corporation's balance sheet at December 31, 20X7, shows the following- AND QUICK RATIO. Charles Current assets Cash $4.000 Marketable securities 8.000 Accounts receivable 100.000 Inventories 120,000 Prepaid expenses 1.000 Total current assets $233,000 Current liabilities Notes payable $5.000 Accounts payable Accrued expenses 150.000 20.000 Income taxes payable 1.000 Total current liabilities S176.000 Long-term liabilities $340.000 Requirement: Determine the following: a. net working capital; b. current ratio; and c. quick ratio.
Transcribed Image Text:Problem 7 NET WORKING CAPITAL, CURRENT RATIO, Corporation's balance sheet at December 31, 20X7, shows the following- AND QUICK RATIO. Charles Current assets Cash $4.000 Marketable securities 8.000 Accounts receivable 100.000 Inventories 120,000 Prepaid expenses 1.000 Total current assets $233,000 Current liabilities Notes payable $5.000 Accounts payable Accrued expenses 150.000 20.000 Income taxes payable 1.000 Total current liabilities S176.000 Long-term liabilities $340.000 Requirement: Determine the following: a. net working capital; b. current ratio; and c. quick ratio.
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