Chapter 3, Problem 3.6ME

Mini-Exercise 3.6

LO 6

Calculate working capital and current ratio Firm O has accounts receivable of $46,400, cash of $34,200, property, plant, and equipment of $510,000, merchandise inventory of $29,600, accounts payable of $41,300, other accrued liabilities of $16,700, common stock of $450,000, and retained earnings of $112,000.

Required:

Calculate Firm N’s working capital and current ratio.