The following items are reported on a company's balance sheet: Line Item Description Amount Cash $228,100 Marketable securities 91,900 Accounts receivable 243,700 Inventory 182,200 Accounts payable 279,700 Determine the (a) current ratio and (b) quick ratio. Round answers to one decimal place. Line Item Description Amount a. Current ratio b. Quick ratio
The following items are reported on a company's balance sheet: Line Item Description Amount Cash $228,100 Marketable securities 91,900 Accounts receivable 243,700 Inventory 182,200 Accounts payable 279,700 Determine the (a) current ratio and (b) quick ratio. Round answers to one decimal place. Line Item Description Amount a. Current ratio b. Quick ratio
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following items are reported on a company's
| Line Item Description | Amount |
|---|---|
| Cash | $228,100 |
| Marketable securities | 91,900 |
| 243,700 | |
| Inventory | 182,200 |
| Accounts payable | 279,700 |
Determine the (a)
| Line Item Description | Amount |
|---|---|
| a. Current ratio | |
| b. Quick ratio |
Expert Solution
Step 1: Introduction:
Liquidity ratios are important form of ratios being used in business. Current ratio shows how much current assets are available for payment of short term or current liabilities. Quick ratio shows how much liquid assets are available for payment of current liabilities.
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