Calculate the current ratio in each of the following separate cases (round the ratio to two decimals).
Question:
Current Assets Current Liabilitles 78,000 104,000 44,000 84,500 60,000 Case I $31,000 75,000 48,000 80.600 99,000 Case 2.... Case 4... Case 5
Step by Step Answer:
Current Assets Current Liabilities Current Ratio Ca...View the full answer
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Related Video
The current ratio is a financial ratio that measures a company\'s ability to pay its short-term obligations with its short-term assets. It is calculated by dividing a company\'s current assets by its current liabilities. The formula for calculating the current ratio is: Current Ratio = Current Assets / Current Liabilities Current assets are assets that can be converted to cash within one year, while current liabilities are debts that are due within one year. A current ratio of 1:1 or greater is generally considered good, as it indicates that a company has enough current assets to cover its current liabilities. A current ratio of less than 1:1 may suggest that a company may have difficulty meeting its short-term obligations. It\'s important to note that the current ratio is just one of many financial ratios that can be used to assess a company\'s financial health. It should be used in conjunction with other financial ratios and qualitative factors to make informed decisions about investing or lending to a company.
Students also viewed these Accounting questions
-
Calculate the current ratio in each of the following separate cases(round the ratio to two decimals) Identify the company case with the strongest liquidity position (these cases represent competing...
-
Calculate (to two decimal places) the current ratio in each of the following cases and indicate whether it is Favourable (F) or Unfavourable (U) (assuming that the current ratio for the industry is...
-
Calculate the acid-test ratio in each of the following cases: Required Which case is in the best position to meet short-term obligations most easily? Explain your choice. Round calculations to two...
-
In Problems 4164, graph each function using the techniques of shifting, compressing, stretching, and/or reflecting. Start with the graph of the basic function (for example, y = x 2 ) and show all the...
-
A salad oil bottling plant can either purchase caps for the glass bottles at 5 cents each or install $500,000 worth of plastic molding equipment and manufacture the caps at the plant. The...
-
Vaughn Corporation reports net income of $380,250and a weighted-average of195,000shares of common stock outstanding for the year. Compute the earnings per share of common stock. (Round answer to 2...
-
The test statistic F is never greater than 1. In Exercises 7 and 8, determine whether the statement is true or false. If the statement is false, rewrite it as a true statement.
-
1. How serious were the alleged accounting misstatements? As part of your answer, consider whether they were material and whether they were fraudulent. 2. Suppose you were defending Mr. Rand. Could...
-
Bruce and Annie were married for 10 years. During their entire relationship, Bruce endured excruciating verbal, emotional, and physical abuse. Annie's drinking problem caused her to have explosive...
-
Annual demand for number 2 pencils at the campus store is normally distributed with mean 1,000 and standard deviation 250. The store purchases the pencils for 6 cents each and sells them for 20 cents...
-
Use the information in the adjusted trial balance reported in Exercise 4-4 to compute the current ratio as of the balance sheet date (round the ratio to two decimals). Interpret the current ratio for...
-
These 16 accounts are from the Adjusted Trial Balance columns of a companys 10-column work sheet. In the blank space beside each account, write the letter of the appropriate financial statement...
-
In a 1993 article in Accounting and Business Research, Meier, Alam, and Pearson studied auditor lobbying on several proposed U.S. accounting standards that affect banks and savings and loan...
-
Bolt Company is a clothing manufacturer. The following items relate to transactions that occurred close to Bolts December 31 fiscal year-end date. Item I: Merchandise costing $5,000 was shipped to a...
-
Explain how deferred revenue can be misused to overstate earnings.
-
When CUCs major expense items remain identical quarter after quarter as a percentage of revenues, it is a signal that the reported expenses and revenues are being ___________ .
-
When CUC precisely ___________ analysts earnings and revenue expectations quarter after quarter, it is often a sign that things may be too good to be true.
-
In a company that sells membership subscriptions, deferred revenue ___________ as a percentage of total revenue is an indication that the company may be overstating revenues.
-
Which is true about a service? (Choose two.) A. Changing the service provider interface always requires recompiling the service provider. B. Changing the service provider interface sometimes requires...
-
Cable Corporation is 60% owned by Anna and 40% owned by Jim, who are unrelated. It has noncash assets, which it sells to an unrelated purchaser for $100,000 in cash and $900,000 in installment...
-
Think about a team you know well, e.g., a volunteer organization, a school club, a small group at work, or a sports team. Now think about an idea you might introduce to the team an idea that team...
-
Refer to Forten Company's financial statements and related information in Problem. In problem Additional Information on Year 2015 Transactions a. The loss on the cash sale of equipment was $5,125...
-
Golden Corp., a merchandiser, recently completed its 2015 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3)...
-
Refer to the information reported about Golden Corporation in Problem. In Problem Additional Information on Year 2015 Transactions a. Purchased equipment for $36,000 cash. b. Issued 12,000 shares of...
-
.Sofbank is offering four accounts with different quotations. If you have $1000 to invest, what will be the balance in 17 years? account A: 3.75 percent, compounded annually account B: account C:...
-
Softbank bond pays $100 coupon annually with face value $1000. Market interest rates are compounded annually, please find the bond prices in the following table. Market interest rate 1-year bond...
-
Choose an artifact (eg an object/photo/symbol) or a leader from your own culture and explain its (his/her/their) significance and values associated with your culture.
Study smarter with the SolutionInn App