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, $1,460,000; prepaid expenses, $520,000; long-term assets, $2,500,000; and shareholders' equity, $2,600,000. The current ratio at the end of the year was 2.5 and the debt to equity ratio was 1.5. 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
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, $1,460,000; prepaid expenses, $520,000; long-term assets, $2,500,000; and shareholders' equity, $2,600,000. The current ratio at the end of the year was 2.5 and the debt to equity ratio was 1.5. 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 3-19 (Algo) Calculating ratios; solve for unknowns [LO3-8]
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, $1,460,000; prepaid expenses, $520,000; long-term assets, $2,500,000; and
shareholders' equity, $2,600,000. The current ratio at the end of the year was 2.5 and the debt to equity ratio was 1.5.
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9f13de0d-8ee2-4557-ab0a-aa1afa2929f4%2F5a97b494-86c9-4635-81a1-01ca0c459d8a%2Faswvxew_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 3-19 (Algo) Calculating ratios; solve for unknowns [LO3-8]
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, $1,460,000; prepaid expenses, $520,000; long-term assets, $2,500,000; and
shareholders' equity, $2,600,000. The current ratio at the end of the year was 2.5 and the debt to equity ratio was 1.5.
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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