The following amounts were reported by Leau Ltd. in its most recent statement of financial position: Cash   $31,760   Accounts payable   $612,000 Accounts receivable   404,940   Wages payable   33,000 Inventory   786,060   Income tax payable   56,000 Prepaid insurance   15,880   Unearned revenue   93,000 Property, plant, and equipment (net)   1,529,000   Bank loan payable (due in 5 years)   52,000   New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect. Calculate the current ratio and quick ratio for Leau Ltd. (Round answers to 2 decimal places, e.g. 15.25.) Current ratio       Quick ratio         eTextbook and Media                   Partially correct answer iconYour answer is partially correct. Leau Ltd.’s bank loan includes covenants related to minimum current and quick ratios that the company must maintain. The covenants state that the company must maintain a current ratio of 1.40 or more, and a quick ratio of 0.63 or more. How would a $79,400 loan, which would be repayable in three years, affect your analysis? (Round answer to 2 decimal places, e.g. 15.25.) Quick ratio

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following amounts were reported by Leau Ltd. in its most recent statement of financial position:

Cash   $31,760   Accounts payable   $612,000
Accounts receivable   404,940   Wages payable   33,000
Inventory   786,060   Income tax payable   56,000
Prepaid insurance   15,880   Unearned revenue   93,000
Property, plant, and equipment (net)   1,529,000   Bank loan payable (due in 5 years)   52,000
 
New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.
Calculate the current ratio and quick ratio for Leau Ltd. (Round answers to 2 decimal places, e.g. 15.25.)

Current ratio      
Quick ratio      
 

eTextbook and Media

 
 
 
 
 
 
 
 
 
Partially correct answer iconYour answer is partially correct.
Leau Ltd.’s bank loan includes covenants related to minimum current and quick ratios that the company must maintain. The covenants state that the company must maintain a current ratio of 1.40 or more, and a quick ratio of 0.63 or more. How would a $79,400 loan, which would be repayable in three years, affect your analysis? (Round answer to 2 decimal places, e.g. 15.25.)

Quick ratio    

The company                                                                        wouldwould not meet its target.
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