The balance sheet of Canyon Gear Co. reports the following: Description Amount Cash $750,000 Accounts receivable $500,000 Inventory $350,000 Marketable securities $300,000 Current liabilities $600,000 Long-term liabilities $800,000 Based on the information provided, calculate the quick ratio.

The balance sheet of Canyon Gear Co. reports the following: Description Amount Cash $750,000 Accounts receivable $500,000 Inventory $350,000 Marketable securities $300,000 Current liabilities $600,000 Long-term liabilities $800,000 Based on the information provided, calculate the quick ratio.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 16P: Ratios Analyses: McCormick Refer to the information for McCormick above. Additional information for...

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Question

Financial Accounting

The balance sheet of Canyon Gear Co. reports the following:
Description
Amount
Cash
$750,000
Accounts receivable
$500,000
Inventory
$350,000
Marketable securities $300,000
Current liabilities
$600,000
Long-term liabilities
$800,000
Based on the information provided, calculate the quick ratio.

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