(Related to Checkpoint 4.1) (Liquidity analysis) The most recent balance sheet of Raconteurs, Inc., (in millions) is found here: a. Calculate Raconteurs' current ratio and acid-test (quick) ratio. b. Benchmark ratios for the current and acid-test (quick) ratio are 1.48 and 1.22, respectively. What can you say about the liquidity of Raconteur's operations based on these two ratios? a. Calculate Raconteurs' current ratio and acid-test (quick) ratio. Raconteurs' current ratio is (Round to two decimal places.) Data table Current assets Cash and marketable securities $9.7 Accounts receivable $40.3 Inventory $59.8 Total current assets $109.8 Current liabilities Accrued wages and taxes $5.1 Accounts payable $34.3 Notes payable $29.8 $89.2 Total current liabilities (Click on the icon in order to copy its contents into a spreadsheet.)
(Related to Checkpoint 4.1) (Liquidity analysis) The most recent balance sheet of Raconteurs, Inc., (in millions) is found here: a. Calculate Raconteurs' current ratio and acid-test (quick) ratio. b. Benchmark ratios for the current and acid-test (quick) ratio are 1.48 and 1.22, respectively. What can you say about the liquidity of Raconteur's operations based on these two ratios? a. Calculate Raconteurs' current ratio and acid-test (quick) ratio. Raconteurs' current ratio is (Round to two decimal places.) Data table Current assets Cash and marketable securities $9.7 Accounts receivable $40.3 Inventory $59.8 Total current assets $109.8 Current liabilities Accrued wages and taxes $5.1 Accounts payable $34.3 Notes payable $29.8 $89.2 Total current liabilities (Click on the icon in order to copy its contents into a spreadsheet.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Need help answering A and B please.
Transcribed Image Text:(Related to Checkpoint 4.1) (Liquidity analysis) The most recent balance sheet of Raconteurs, Inc., (in millions) is found here:
a. Calculate Raconteurs' current ratio and acid-test (quick) ratio.
b. Benchmark ratios for the current and acid-test (quick) ratio are 1.48 and 1.22, respectively. What can you say about the liquidity of Raconteur's operations based on these two ratios?
a. Calculate Raconteurs' current ratio and acid-test (quick) ratio.
Raconteurs' current ratio is (Round to two decimal places.)
Data table
Current assets
Cash and marketable securities
$9.7
Accounts receivable
$40.3
Inventory
$59.8
Total current assets
$109.8
Current liabilities
Accrued wages and taxes
$5.1
Accounts payable
$34.3
Notes payable
$29.8
$89.2
Total current liabilities
(Click on the icon in order to copy its contents into a spreadsheet.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education