River Valley Manufacturing has the following account balances: . Cash: $35,000 ⚫ • Marketable Securities: $18,000 ⚫ Accounts Receivable: $42,000 Inventory: $75,000 • • Prepaid Insurance: $7,000 • ⚫ Short-term Notes Payable: $45,000 . Accounts Payable: $35,000 Accrued Wages: $20,000 Calculate River Valley Manufacturing's acid-test ratio:

River Valley Manufacturing has the following account balances: . Cash: $35,000 ⚫ • Marketable Securities: $18,000 ⚫ Accounts Receivable: $42,000 Inventory: $75,000 • • Prepaid Insurance: $7,000 • ⚫ Short-term Notes Payable: $45,000 . Accounts Payable: $35,000 Accrued Wages: $20,000 Calculate River Valley Manufacturing's acid-test ratio:

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 1P: Greene Sisters has a DSO of 20 days. The companys average daily sales are 20,000. What is the level...

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