The current asset section of Guardian Consultant's balance sheet consists of cash, accounts receivable, and prepaid expenses. The balance sheet reported the following: cash, $1,300,000; prepaid expenses, $360,000; long-term assets, $2,400,000; and shareholders' equity, $2,500,000. The current ratio at the end of the year was 2.0 and the debt to equity ratio was 1.4.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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The current asset section of Guardian Consultant's balance sheet consists of cash, accounts receivable, and prepaid expenses. The
balance sheet reported the following: cash, $1,300,000; prepaid expenses, $360,000; long-term assets, $2,400,000; and
shareholders' equity, $2,500,000. The current ratio at the end of the year was 2.0 and the debt to equity ratio was 1.4.
Required:
Determine the following amounts and ratios:
Note: Round your "The acid-test ratio" answer to 1 decimal place.
1. Current liabilities
2. Long-term liabilities
3. Accounts receivable
4. The acid-test ratio
Transcribed Image Text:ces The current asset section of Guardian Consultant's balance sheet consists of cash, accounts receivable, and prepaid expenses. The balance sheet reported the following: cash, $1,300,000; prepaid expenses, $360,000; long-term assets, $2,400,000; and shareholders' equity, $2,500,000. The current ratio at the end of the year was 2.0 and the debt to equity ratio was 1.4. Required: Determine the following amounts and ratios: Note: Round your "The acid-test ratio" answer to 1 decimal place. 1. Current liabilities 2. Long-term liabilities 3. Accounts receivable 4. The acid-test ratio
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