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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, $1,420,000, prepaid expenses, $480,000; long-term assets, $3,600,000; and shareholders' equity, $3,700,000. The current ratio at the end of the year was 2.0 and the debt to equity ratio was 16. 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, $1,420,000, prepaid expenses, $480,000; long-term assets, $3,600,000; and shareholders' equity, $3,700,000. The current ratio at the end of the year was 2.0 and the debt to equity ratio was 16. 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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
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, $1,420,000, prepaid expenses, $480,000; long-term assets, $3,600,000; and shareholders' equity, $3,700,000. The current ratio at the end of the year was 2.0 and the debt to equity ratio was 1.6. 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 add-test ratio
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, $1,420,000, prepaid expenses, $480,000; long-term assets, $3,600,000; and shareholders' equity, $3,700,000. The current ratio at the end of the year was 2.0 and the debt to equity ratio was 1.6. 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 add-test ratio
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