Consider the following data: Requirements 1. Calculate the quick assets and the quick ratio for each company.

Question:

Consider the following data:

B COMPANY Cash . Short-term Investments. Net Current Receivables. Total Current Assets.. Current Liabilities.. D $ 9,200

Requirements
1. Calculate the quick assets and the quick ratio for each company.
2. Calculate the current ratio for each company.
3. Which of the companies should be concerned about its liquidity?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting

ISBN: 978-0134436111

4th edition

Authors: Robert Kemp, Jeffrey Waybright

See More Books

Question Posted: Nov 17, 2017 09:03 AM

See More Questions

Calculate the quick assets and the quick ratio for each of the followingcompanies: Rhodes Peters Cash Short-term Investments.... Net Receivables Current Liabilities ....$15,000 23,000 6,00013,000...
Calculate the quick assets and the quick ratio for each of the following companies: Jaxon Kilborn $10,000 25,000 5,000 15,000 45,000 52,000 45,000 100,000 Cash.. Net Receivab... Current Liabilities.
Consider the following data for a manufacturer: Requirement 1. Compute cost of goods manufactured and cost of goodssold. End of Year Beginning of Year Direct materials inventory Work in process...
Investor's Report Objectives: You will conduct financial statement analysis of two comparable companies and provide recommendations about the financial position about each for two investors. Select...
Different physical or other systems may have the same or similar models, thus showing the unifying power of mathematical methods. Illustrate this for the system in Figs. 43-45(c) Water in a tube...
Southwest Ventures is considering an investment in an Austin, Texas based startup firm called Creed and Company. Creed and Company is involved in organic gardening and has developed a complete line...
4. Suppose that copper costs $3.00 today and the continuously compounded lease rate for copper is 5%. The continuously compounded interest rate is 10%. The copper price in 1 year is uncertain and...
Marc and Michelle are married and earned salaries this year (2009) of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500...
my Rundle Corporation estimated its overhead costs would be $23.600 per month except for January when it pays the $174.450 annual insurance premium on the manufacturing facility. Accordingly, the...
A program to simulate the calculation of Fletcher checksum.
Make the necessary journal entries arising from Greenacres Auto Center's bank reconciliation presented next. Date each entry May 31 and include an explanation with each entry? Greenacres Auto Center...
Tri-State Equipment reported the following items on July 31, 2016 (last year's amounts also given as needed): Requirements 1. Compute Tri-State Equipments (a) quick ratio, (b) current ratio, and (c)...
Access the financial statements of Air Canada for the year ended December 31, 2020, through SEDAR (www.sedar.com) or the companys website. Review the financial statements, including the notes, and...
Malaysian Agrifood Corporation Berhad reported sales of RM 7 0 , 0 0 0 in May and RM 8 0 , 0 0 0 in June. The forecast sales for July, August and September are RM 9 0 , 0 0 0 , RM 1 0 0 , 0 0 0 , and...
1. Refer to the \"Plotting Data\" lesson (end of "Patterns to Notice") and plot the "Skydiver Velocity vs. Time\" data (taken from the video) on the following graph. to c) d) e) f) 9) Which is the...
The Star Company is considering a change in its credit terms to increase sales. Its current credit sales are $8.5 million per year and its present credit terms are 2/16 net of 20 basis. Discount is...
Determine the shear flow distribution for a torque of 57265.0Nm applied to the three cell section shown in the figure below. Note that the section has a constant shear modulus throughout. All answers...
2 a) Figure 1 shows the orientation of the carbon fibre which is orientate at 0.A9 radians from the vertical plane. Draw and label the element's normal and shear stresses acting on the carbon fibre...
A boat is traveling along a circular path having radius . Determine the magnitude of the boats acceleration when the speed is v and the rate of increase in the speed is at. Given: p = 20 m V = 5. S a...
1) The government decided to reduce taxes on fast-food to increase revenue. The government assumes that fast-food products have a) An inelastic demand b) An elastic demand c) A demand curve that is...
Use the data for Spark?s Electrical Supply, Inc., from E4-22A. Requirements 1. Prepare Spark?s Electrical Supply, Inc.?s multistep income statement. 2. Calculate the gross profit percentage. 3. The...
Use the data for Spark?s Electrical Supply, Inc., from E4-22A. Requirement Prepare Spark?s Electrical Supply, Inc.?s classified balance sheet. Use the account format. The balance shown for Retained...
Whole Foods, Inc., had sales revenue of $560,000, cost of goods sold of $224,000, and net income of $84,000 for the year. An average of 8,000 shares of common stock were outstanding during the year....
thumbs up if correct A stock paying no dividends is priced at $154. Over the next 3-months you expect the stock torpeither be up 10% or down 10%. The risk-free rate is 1% per annum compounded...
Question 17 2 pts Activities between affiliated entities, such as a company and its management, must be disclosed in the financial statements of a corporation as O significant relationships O segment...
Marchetti Company, a U.S.-based importer of wines and spirits, placed an order with a French supplier for 1,000 cases of wine at a price of 200 euros per case. The total purchase price is 200,000...

Consider the following data: Requirements 1. Calculate the quick assets and the quick ratio for each company.

Question:

B COMPANY Cash . Short-term Investments. Net Current Receivables. Total Current Assets.. Current Liabilities.. D $ 9,200 7,200 $ 6,000 2,400 $2,000 1,400 $10,600 5,500 10,800 22,600 8,800 13,500 31,500 36,000 12,100 32,500 16,000 8,700 4,500

Step by Step Answer:

Req 1 A B C D Cash 9200 6000 2000 10600 Shortterm inve...View the full answer

Financial Accounting

Students also viewed these Managerial Accounting questions