Connect Access Card for Financial Accounting
9th Edition
ISBN: 9781259738678
Author: Robert Libby, Patricia Libby, Frank Hodge Ch
Publisher: McGraw-Hill Education
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Chapter 13, Problem 6MCQ
To determine
ascertain the quick ratio of the company.
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Students have asked these similar questions
A company's quick ratio is 1.5. If its current
liabilities are $200,000 and inventory is
$50,000, what are its current assets? A)
$250,000 B) $300,000 C) $350,000 D)
$400,000
Given the following:
Current Assets
$
18,000
Accounts Receivable
$
3,000
Current Liabilities
$
16,000
Inventory
$
2,000
Net Sales
$
41,000
Total Assets
$
29,000
Net Income
$
6,000
Find the following (round to the nearest hundredth if needed):
Current Ratio?
Acid test quick ratio?
Average days collection ?
Asset turover ?
Profit Margin on net sales?
Analysis of the statement of financial position of Charon for the year ended 20X9 reveals the following
relationships:
Current ratio 2:1
Sales: current assets 5:1
Acid test ratio 1.5:1
If the sales for the year were $30 million, what is the value of inventory that will appear in the
statement of financial position?
A $1.5m
B $10.5m
C $3.0m
D $4.5m
Chapter 13 Solutions
Connect Access Card for Financial Accounting
Ch. 13 - Who are the primary users of financial statements?Ch. 13 - When considering an investment in stock, investors...Ch. 13 - How does product differentiation differ from cost...Ch. 13 - What are the two general methods for making...Ch. 13 - What are component percentages? Why are they...Ch. 13 - What is ratio analysis? Why is it useful?Ch. 13 - What do profitability ratios focus on? What is an...Ch. 13 - What do turnover ratios focus on? What is an...Ch. 13 - What do liquidity ratios focus on? What is an...Ch. 13 - What do solvency ratios focus on? What is an...
Ch. 13 - What do market ratios focus on? What is an example...Ch. 13 - Prob. 12QCh. 13 - Explain why rapid growth in total sales might not...Ch. 13 - A company has total assets of 500,000 and...Ch. 13 - Prob. 2MCQCh. 13 - Prob. 3MCQCh. 13 - Prob. 4MCQCh. 13 - Prob. 5MCQCh. 13 - Prob. 6MCQCh. 13 - Prob. 7MCQCh. 13 - Prob. 8MCQCh. 13 - Prob. 9MCQCh. 13 - Prob. 10MCQCh. 13 - Prob. 13.1MECh. 13 - Prob. 13.2MECh. 13 - Prob. 13.3MECh. 13 - Computing the Financial Leverage Percentage...Ch. 13 - Analyzing the Inventory Turnover Ratio A...Ch. 13 - Prob. 13.6MECh. 13 - Prob. 13.7MECh. 13 - Prob. 13.8MECh. 13 - Prob. 13.9MECh. 13 - Prob. 13.10MECh. 13 - Using Financial Information to Identify Companies...Ch. 13 - Prob. 13.2ECh. 13 - Prob. 13.3ECh. 13 - Prob. 13.4ECh. 13 - Prob. 13.5ECh. 13 - Prob. 13.6ECh. 13 - Prob. 13.7ECh. 13 - Prob. 13.8ECh. 13 - Prob. 13.9ECh. 13 - Prob. 13.10ECh. 13 - Inferring Financial Information from Ratios E13-11...Ch. 13 - Prob. 13.12ECh. 13 - Prob. 13.13ECh. 13 - Prob. 13.1PCh. 13 - Prob. 13.2PCh. 13 - Prob. 13.3PCh. 13 - Prob. 13.4PCh. 13 - Prob. 13.5PCh. 13 - Computing Comparative Financial Statements and...Ch. 13 - Analyzing Financial Statements Using Ratios Use...Ch. 13 - Prob. 13.8PCh. 13 - Prob. 13.9PCh. 13 - Prob. 13.1APCh. 13 - Prob. 13.2APCh. 13 - Calculating Profitability, Turnover, Liquidity,...Ch. 13 - Prob. 13.4APCh. 13 - Prob. 13.5APCh. 13 - Prob. 13.6APCh. 13 - Prob. 13.1CPCh. 13 - Prob. 13.2CPCh. 13 - Comparing Companies within an Industry Refer to...Ch. 13 - Prob. 13.4CPCh. 13 - Inferring Information from the DuPont Model Ratios...Ch. 13 - Prob. 13.6CP
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- In the base year, Marley Enterprises of Vancouver had cash of $560, accounts receivable of $2650, inventory of $4,690, and fixed assets of $12.600. This year the firm has cash of $630, accounts recevables of $3.280, inventory of $5,101, and foed assets of $15.850. What is the common-base year value of the inventory? 25arrow_forwardCurrent Attempt in Progress Aspect Ltd has the following balance sheet figures. The current ratio is: Total current assets $450 000 Total current liabilities Inventory Bank overdraft O 2:1. O 1.67:1. 3.75:1. 3:1. Save for Later 150 000 200 000 30 000arrow_forwardJT Engineering's current asset information is shown here. If JT's current liabilities are $300,000, what is JT's current ratio and what is its acid-test ratio? Round each ratio to the nearest hundredth. Current Assets Cash $ 9.000 Short-term investments 89.000 Accounts receivable 76.000 Inventory Prepaid expenses 130,000 40,000 Total current assets $344,000 The current ratio is 1.15 times and the acid-test ratio is 0.58 times. The current ratio is 0.58 times and the acid-test ratio is 1.01 times. The current ratio is 0.58 times and the acid-test ratio is 1.15 times. The current ratio is 1.65 times and the acid-test ratio is 0.71 times.arrow_forward
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- Provide correct answerarrow_forwardplease anwer all the questions i have mentioned below : - A company has the following items for the fiscal year 2020: Cash = 2 million Marketable securities = 3 million Account receivables (A/R) = 1.5 million Inventories = 8.5 million Total current liabilities = 8 million Calculate the company’s current ratio and quick ratio 2. Write the formula for the following ratios and what each ratio measures: Asset turnover Inventory Turnover and Days Inventory Receivable Collection Period 3. Write down the DuPont framework. How would you explain to your non-MBA non-Finance friend about the DuPont framework and why it is important?arrow_forwardACTIVITY 1. MULTIPLE CHOICE wblupi moit boog aamoz a adT Directions: Encircle the letter of the correct answer. 1. MCL Company has a total quick asset of P100,000.00 and quick ratio of 10. How much is the current liabilities of the entity? a. P1,000,000.00 b. P1,100,000.00 c. P900,000.00 d. P10,000.00 2. If the company's net sales is P250,000.00 and the average accounts receivable is P50,000.00, what is the A/R turnover ratio? c. P200,000.00 m d. P300,000.00 a. 5 To Coubrc bns 00.000,000 3. From a current ratio of 4 in 2018, the current ratio of the company is 5 in 2019. b. 1/5 a. This is something good from a liquidity standpoint. b. This is something bad from a liquidity standpoint c. This data has no implication on the liquidity status of the company. d. All of the above.arrow_forward
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