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 $16,400 Short-term investments 49,000 Accounts receivable (net) 169,000 Inventory 200,000 Prepaid expenses 11,600 Current assets $446,000 Bell Company's current liabilities at the beginning of the year were $137,000 and during the year its operating activities provided a cash flow of $55,000. a. What are the firm's current liabilities on December 31? Round answer to the nearest whole number. Answer b. What is the firm's working capital on December 31? Round answer to the nearest whole number. Answer c. What is the quick ratio on December 31? Round answer to 2 decimal places. Answer d. What is the Bell's operating-cash-flow-to-current-liabilities ratio? Round answer to 2 decimal places. Answer PreviousSave AnswersNext
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 $16,400 Short-term investments 49,000 Accounts receivable (net) 169,000 Inventory 200,000 Prepaid expenses 11,600 Current assets $446,000 Bell Company's current liabilities at the beginning of the year were $137,000 and during the year its operating activities provided a cash flow of $55,000. a. What are the firm's current liabilities on December 31? Round answer to the nearest whole number. Answer b. What is the firm's working capital on December 31? Round answer to the nearest whole number. Answer c. What is the quick ratio on December 31? Round answer to 2 decimal places. Answer d. What is the Bell's operating-cash-flow-to-current-liabilities ratio? Round answer to 2 decimal places. Answer PreviousSave AnswersNext
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Bell Company has a
| Cash | $16,400 |
| Short-term investments | 49,000 |
| 169,000 | |
| Inventory | 200,000 |
| Prepaid expenses | 11,600 |
| Current assets | $446,000 |
Bell Company's current liabilities at the beginning of the year were $137,000 and during the year its operating activities provided a
a. What are the firm's current liabilities on December 31?
Round answer to the nearest whole number.
Answer
b. What is the firm's working capital on December 31?
Round answer to the nearest whole number.
Answer
c. What is the quick ratio on December 31?
Round answer to 2 decimal places.
Answer
d. What is the Bell's operating-cash-flow-to-current-liabilities ratio?
Round answer to 2 decimal places.
Answer
PreviousSave AnswersNext
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Step 1: Concept of current ratio,working capital,Quick ratio,operating cash flows
VIEWStep 2: Firm's Current Liabilities as on 31 December
VIEWStep 3: b Working capital as on 31 st December
VIEWStep 4: c Quick ratio as on 31st December
VIEWStep 5: d Operating cash flows to Current liabilities ratio
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