The following items are reported on a company's balance sheet: Cash $550,800 Marketable securities 430,300 Accounts receivable (net) 409,100 Inventory 331,000 Accounts payable 662,000 Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place.
The following items are reported on a company's balance sheet: Cash $550,800 Marketable securities 430,300 Accounts receivable (net) 409,100 Inventory 331,000 Accounts payable 662,000 Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ratio analysis helps to analyze the financial statements of the company. The management can take decisions on the basis of these ratios. It is also helpful to compare two or more financial statements.
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