Working Capital and Short Term Liquidity Ratios Bell Company has a current ratio of 2.85 on December 31. On that date the company's current assets are as follows: Cash Short-term investments Accounts receivable (net) Inventory Prepaid expenses Current assets $31,400 52,000 169,000 220,000 11,600 $484,000 Bell Company's current liabilities at the beginning of the year were $135,000 and during the year its operating activities provided a cash flow of $50,000. a. What are the firm's current liabilities on December 31? Round answer to the nearest whole number. 0 b. What is the firm's working capital on December 31? Round answer to the nearest whole number. 0 c. What is the quick ratio on December 31? Round answer to 2 decimal places. 0 d. What is the Bell's operating-cash-flow-to-current-liabilities ratio? Round answer to 2 decimal places. 0
Working Capital and Short Term Liquidity Ratios Bell Company has a current ratio of 2.85 on December 31. On that date the company's current assets are as follows: Cash Short-term investments Accounts receivable (net) Inventory Prepaid expenses Current assets $31,400 52,000 169,000 220,000 11,600 $484,000 Bell Company's current liabilities at the beginning of the year were $135,000 and during the year its operating activities provided a cash flow of $50,000. a. What are the firm's current liabilities on December 31? Round answer to the nearest whole number. 0 b. What is the firm's working capital on December 31? Round answer to the nearest whole number. 0 c. What is the quick ratio on December 31? Round answer to 2 decimal places. 0 d. What is the Bell's operating-cash-flow-to-current-liabilities ratio? Round answer to 2 decimal places. 0
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 4E
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![Working Capital and Short Term Liquidity Ratios
Bell Company has a current ratio of 2.85 on December 31. On that date the company's current assets are as follows:
Cash
Short-term investments
Accounts receivable (net)
Inventory
Prepaid expenses
Current assets
$31,400
52,000
169,000
220,000
11,600
$484,000
Bell Company's current liabilities at the beginning of the year were $135,000 and during the year its operating activities provided a cash flow of $50,000.
a. What are the firm's current liabilities on December 31?
Round answer to the nearest whole number.
0
b. What is the firm's working capital on December 31?
Round answer to the nearest whole number.
0
c. What is the quick ratio on December 31?
Round answer to 2 decimal places.
0
d. What is the Bell's operating-cash-flow-to-current-liabilities ratio?
Round answer to 2 decimal places.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff1ac4a5c-5c91-4743-9545-fc03c7695e62%2F939b0757-52c9-41f0-9ec5-2d2c8ac01c81%2F515ik6_processed.png&w=3840&q=75)
Transcribed Image Text:Working Capital and Short Term Liquidity Ratios
Bell Company has a current ratio of 2.85 on December 31. On that date the company's current assets are as follows:
Cash
Short-term investments
Accounts receivable (net)
Inventory
Prepaid expenses
Current assets
$31,400
52,000
169,000
220,000
11,600
$484,000
Bell Company's current liabilities at the beginning of the year were $135,000 and during the year its operating activities provided a cash flow of $50,000.
a. What are the firm's current liabilities on December 31?
Round answer to the nearest whole number.
0
b. What is the firm's working capital on December 31?
Round answer to the nearest whole number.
0
c. What is the quick ratio on December 31?
Round answer to 2 decimal places.
0
d. What is the Bell's operating-cash-flow-to-current-liabilities ratio?
Round answer to 2 decimal places.
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