The top management of Flashline Services examines the following company accounting records at July 29, immediately before
Question:
The top management of Flashline Services examines the following company accounting records at July 29, immediately before the end of the year, July 31:
Total current assets ..................... $ 324,500
Noncurrent assets........................ 1,086,000
$1,410,500
Total current liabilities ................ $ 173,500
Noncurrent liabilities .................. 253,400
Stockholders’ equity .................... 983,600
$1,410,500
Requirement
Suppose Flashline’s management wants to achieve a current ratio of 3. How much in current liabilities should the company pay off within the next two days in order to achieve its goal?
Step by Step Answer:
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.