Current ratio and quick ratios of Company J.

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Answer 1

Question

Chapter 3, Problem 8P

a)

Summary Introduction

To determine: Current ratio and quick ratios of Company J.

b)

Summary Introduction

To determine: Current ratio and quick ratio when company J takes $0.25 million in cash and pays $0.25 million of current liabilities.

c)

Summary Introduction

To determine: Current ratio and quick ratio when company J sells $0.5 million of its accounts receivables to bank and uses proceeds from short term debts.

d)

Summary Introduction

To determine: Current ratio and quick ratio when company J sells $1.0 million in new stock and places the proceeds in marketable securities.

e)

Summary Introduction

To discuss: The way these examples illustrate about quick ratio and current ratio.

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The Jamesway Printing Corporation has current assets of $3.2 million. Of this total, $1.2 million is inventory, $0.5 million is cash, $1.0 million is accounts receivable, and the balance is marketable securities. Jamesway has $1.5 million in current liabilities. Round your answers to two decimal places. a. What are the current and the quick ratios for Jamesway? Current ratio: X Quick ratio: b. If Jamesway takes $0.25 million in cash and pays off $0.25 million of current liabilities, what happens to its current and quick ratios? What happens to its real liquidity? New current ratio: X New quick ratio: c. If Jamesway sells $0.6 million of its accounts receivable to a bank and uses the proceeds to pay off short-term debt obligations, what happens to its current and quick ratios? New current ratio: New quick ratio: d. If Jamesway sells $1.2 million in new stock and places the proceeds in marketable securities, what happens to its current and quick ratios? New current ratio: New quick…

Rhea Company has P9,000 in cash, P11,000 in marketable securities, P26,000 in current receivables, P34,000 in inventories, and P40,000 in current liabilities. The Rhea's quick ratio is closest to * Choices: 1.35. 1.15. 1.73. 2.00.

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Answer 2

Question

Chapter 3, Problem 8P

a)

Summary Introduction

To determine: Current ratio and quick ratios of Company J.

b)

Summary Introduction

To determine: Current ratio and quick ratio when company J takes $0.25 million in cash and pays $0.25 million of current liabilities.

c)

Summary Introduction

To determine: Current ratio and quick ratio when company J sells $0.5 million of its accounts receivables to bank and uses proceeds from short term debts.

d)

Summary Introduction

To determine: Current ratio and quick ratio when company J sells $1.0 million in new stock and places the proceeds in marketable securities.

e)

Summary Introduction

To discuss: The way these examples illustrate about quick ratio and current ratio.

Expert Solution & Answer

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Answer 3

Question

Chapter 3, Problem 8P

a)

Summary Introduction

To determine: Current ratio and quick ratios of Company J.

b)

Summary Introduction

To determine: Current ratio and quick ratio when company J takes $0.25 million in cash and pays $0.25 million of current liabilities.

c)

Summary Introduction

To determine: Current ratio and quick ratio when company J sells $0.5 million of its accounts receivables to bank and uses proceeds from short term debts.

d)

Summary Introduction

To determine: Current ratio and quick ratio when company J sells $1.0 million in new stock and places the proceeds in marketable securities.

e)

Summary Introduction

To discuss: The way these examples illustrate about quick ratio and current ratio.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 3, Problem 8P

a)

Summary Introduction

To determine: Current ratio and quick ratios of Company J.

b)

Summary Introduction

To determine: Current ratio and quick ratio when company J takes $0.25 million in cash and pays $0.25 million of current liabilities.

c)

Summary Introduction

To determine: Current ratio and quick ratio when company J sells $0.5 million of its accounts receivables to bank and uses proceeds from short term debts.

d)

Summary Introduction

To determine: Current ratio and quick ratio when company J sells $1.0 million in new stock and places the proceeds in marketable securities.

e)

Summary Introduction

To discuss: The way these examples illustrate about quick ratio and current ratio.

Expert Solution & Answer

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Answer 5

Chapter 3, Problem 8P

a)

Summary Introduction

To determine: Current ratio and quick ratios of Company J.

b)

Summary Introduction

To determine: Current ratio and quick ratio when company J takes $0.25 million in cash and pays $0.25 million of current liabilities.

c)

Summary Introduction

To determine: Current ratio and quick ratio when company J sells $0.5 million of its accounts receivables to bank and uses proceeds from short term debts.

d)

Summary Introduction

To determine: Current ratio and quick ratio when company J sells $1.0 million in new stock and places the proceeds in marketable securities.

e)

Summary Introduction

To discuss: The way these examples illustrate about quick ratio and current ratio.

Answer 6

Chapter 3, Problem 8P

a)

Summary Introduction

To determine: Current ratio and quick ratios of Company J.

Answer 7

Chapter 3, Problem 8P

a)

Summary Introduction

To determine: Current ratio and quick ratios of Company J.

Answer 8

b)

Summary Introduction

To determine: Current ratio and quick ratio when company J takes $0.25 million in cash and pays $0.25 million of current liabilities.

Answer 9

b)

Summary Introduction

To determine: Current ratio and quick ratio when company J takes $0.25 million in cash and pays $0.25 million of current liabilities.

Answer 10

c)

Summary Introduction

To determine: Current ratio and quick ratio when company J sells $0.5 million of its accounts receivables to bank and uses proceeds from short term debts.

Answer 11

c)

Summary Introduction

To determine: Current ratio and quick ratio when company J sells $0.5 million of its accounts receivables to bank and uses proceeds from short term debts.

Answer 12

d)

Summary Introduction

To determine: Current ratio and quick ratio when company J sells $1.0 million in new stock and places the proceeds in marketable securities.

Answer 13

d)

Summary Introduction

To determine: Current ratio and quick ratio when company J sells $1.0 million in new stock and places the proceeds in marketable securities.

Answer 14

e)

Summary Introduction

To discuss: The way these examples illustrate about quick ratio and current ratio.

Answer 15

e)

Summary Introduction

To discuss: The way these examples illustrate about quick ratio and current ratio.

Answer 16

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Answer 17

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Answer 18

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Answer 19

Ch. 3 - Prob. 1QTD Ch. 3 - Prob. 2QTD Ch. 3 - Prob. 3QTD Ch. 3 - Prob. 4QTD Ch. 3 - Prob. 5QTD Ch. 3 - Prob. 6QTD Ch. 3 - Prob. 7QTD Ch. 3 - Prob. 8QTD Ch. 3 - Prob. 9QTD Ch. 3 - Prob. 10QTD

Current ratio and quick ratios of Company J.

Solution Summary: The author explains the current and quick ratios of Company J. Current assets are 3.0 million, inventory is 1.0 million and accounts receivables are 0.5 million.

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To determine: Current ratio and quick ratios of Company J.

To determine: Current ratio and quick ratio when company J takes $0.25 million in cash and pays $0.25 million of current liabilities.

To determine: Current ratio and quick ratio when company J sells $0.5 million of its accounts receivables to bank and uses proceeds from short term debts.

To determine: Current ratio and quick ratio when company J sells $1.0 million in new stock and places the proceeds in marketable securities.

To discuss: The way these examples illustrate about quick ratio and current ratio.

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Chapter 3 Solutions