XYZ Company Balance Sheet Liabilities Assets Cash $10,000 Notes Inventory $61,000 Wages Property $110,000 Equity Stock $65,000 $76,000 $50,000 Investment $39,000 Total Assets: Total Liabilities + Equity: Using the balance sheet provided, what is the decimal value for the quick ratio? quick ratio = [?] Round to the nearest tenth. Enter
XYZ Company Balance Sheet Liabilities Assets Cash $10,000 Notes Inventory $61,000 Wages Property $110,000 Equity Stock $65,000 $76,000 $50,000 Investment $39,000 Total Assets: Total Liabilities + Equity: Using the balance sheet provided, what is the decimal value for the quick ratio? quick ratio = [?] Round to the nearest tenth. Enter
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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What is decimal value got the quick ratio
![**Balance Sheet Analysis: Quick Ratio Calculation**
**XYZ Company Balance Sheet**
**Assets:**
- Cash: $10,000
- Inventory: $61,000
- Property: $110,000
**Liabilities:**
- Notes: $65,000
- Wages: $76,000
**Equity:**
- Stock: $50,000
- Investment: $39,000
**Instructions:**
Using the balance sheet provided, what is the decimal value for the quick ratio?
**Formula:**
\[ \text{Quick Ratio} = \frac{\text{Cash} + \text{Receivables} (if any)}{\text{Current Liabilities}} \]
**Calculation:**
Given the assets and liabilities, the quick ratio focuses specifically on cash and accounts that can be quickly converted to cash (excludes inventory and property). Therefore, only cash is considered in this problem.
\[ \text{Quick Ratio} = \frac{\$10,000}{\$65,000 + \$76,000} \]
Round to the nearest tenth.
\[ \text{Quick Ratio} = \frac{\$10,000}{\$141,000} \approx 0.07 \]
**Note:** The inventory and property values are not included in the quick ratio.
Click 'Enter' to submit your answer.
_END OF INSTRUCTION_](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F86ce596e-54dc-4fe9-b5de-f8c7633b4f97%2Fbdad9e7f-4a79-4f8f-9894-f6fd048ebe35%2F3asl72o_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Balance Sheet Analysis: Quick Ratio Calculation**
**XYZ Company Balance Sheet**
**Assets:**
- Cash: $10,000
- Inventory: $61,000
- Property: $110,000
**Liabilities:**
- Notes: $65,000
- Wages: $76,000
**Equity:**
- Stock: $50,000
- Investment: $39,000
**Instructions:**
Using the balance sheet provided, what is the decimal value for the quick ratio?
**Formula:**
\[ \text{Quick Ratio} = \frac{\text{Cash} + \text{Receivables} (if any)}{\text{Current Liabilities}} \]
**Calculation:**
Given the assets and liabilities, the quick ratio focuses specifically on cash and accounts that can be quickly converted to cash (excludes inventory and property). Therefore, only cash is considered in this problem.
\[ \text{Quick Ratio} = \frac{\$10,000}{\$65,000 + \$76,000} \]
Round to the nearest tenth.
\[ \text{Quick Ratio} = \frac{\$10,000}{\$141,000} \approx 0.07 \]
**Note:** The inventory and property values are not included in the quick ratio.
Click 'Enter' to submit your answer.
_END OF INSTRUCTION_
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