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The following data are taken from the balance sheet at the end of the current year.  Determine the (a) working capital, (b) current ratio, and (c) quick/acid-test ratio.  Present figures used in your computations.  Round ratios to the nearest tenth.   Accounts payable $145,000 Accounts receivable 110,000 Accrued liabilities 4,000 Cash 80,000 Income tax payable 10,000 Inventory 140,000 Marketable securities 250,000 Notes payable, short-term 85,000 Prepaid expenses 15,000   ANSWERS:   (a)   (b)   (c)

The following data are taken from the balance sheet at the end of the current year.  Determine the (a) working capital, (b) current ratio, and (c) quick/acid-test ratio.  Present figures used in your computations.  Round ratios to the nearest tenth.   Accounts payable $145,000 Accounts receivable 110,000 Accrued liabilities 4,000 Cash 80,000 Income tax payable 10,000 Inventory 140,000 Marketable securities 250,000 Notes payable, short-term 85,000 Prepaid expenses 15,000   ANSWERS:   (a)   (b)   (c)

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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The following data are taken from the balance sheet at the end of the current year.  Determine the (a) working capital, (b) current ratio, and (c) quick/acid-test ratio.  Present figures used in your computations.  Round ratios to the nearest tenth.

 

Accounts payable

$145,000

Accounts receivable

110,000

Accrued liabilities

4,000

Cash

80,000

Income tax payable

10,000

Inventory

140,000

Marketable securities

250,000

Notes payable, short-term

85,000

Prepaid expenses

15,000

 

ANSWERS:

 

(a)

 

(b)

 

(c)

 

 

 

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