At year-end, your company has cash of ($11,800), receivables of ($47,700), inventory of ($36,200), and prepaid expenses

Question:

At year-end, your company has cash of $$11,800$, receivables of $$47,700$, inventory of $$36,200$, and prepaid expenses totaling $$4,800$. Liabilities of $$62,800$ must be paid next year. What is your acid-test ratio?

a. 0.76

b. 1.52

c. 0.95

d. Cannot be determined from the data given

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

Step by Step Answer:

Related Book For book-img-for-question

Financial And Managerial Accounting

ISBN: 9780135080191

2nd Edition

Authors: Charles T Horngren, Jr Walter T Harrison

See More Books

Question Posted: May 13, 2024 02:00 PM

See More Questions

At year's end your company has cash of $10,500, receivables of $49,900, inventory of $40,200, and prepaid expenses totaling $5,900, Liabilities of $56,500 must be paid next year. A year ago...
At year-end, your company has cash of $\$ 10,000$, receivables of $\$ 50,000$, inventory of $\$ 40,000$, and prepaid expenses totaling $\$ 5,000$. Liabilities of $\$ 60,000$ must be paid...
At year-end, Snow, Inc. has cash of $ 9 comma 000, current accounts receivable of $ 50 comma 000, merchandise inventory of $ 21 comma 000, and prepaid expenses totaling $ 4 comma 100. Liabilities of...
Let a function f be the line graph connecting the data points (1, 2), (4,9), and (6,3). (a) Write the formula for a piecewise-linear function f that passes through these data points whose domain is 1...
Explain why thin material may be difficult to draw into a defect-free cup.
Why is the growth of managed care a relatively recent phenomenon? Describe governmental policies and practices that have encouraged managed care organizations and inhibited them.
The following table lists the 25 largest U.S. higher education institutions according to enrollment figures from U.S. Department of Education. The state of location is given in parenthesis.
A university administrator has collected data on total Scholastic Aptitude Test (SAT) score versus freshman grade point average (GPA) for a sample of students who recently finished their first year...
Adams Company Unadjusted Trial Balance December 31, 2018 126,000 23,000 9,500 24,000 110,000 15,000 75,000 Cash Accounts Receivable Supplies Prepaid Insurance Inventory Vehicle Equipment Accumulated...
Return to the data in the preceding question. A year ago receivables stood at $$66,900$, and sales for the current year totaled $$706,600$. How many days did it take you to collect your average...
Return to the data in the preceding question. What will the income statement report for this situation? a. Nothing, because you have not received the cash yet b. Interest revenue of $404 c. Note...
Sammy, Inc. manufactures motor scooters. For each of the following examples of quality costs, indicate which of the following quality cost categories each example represents: prevention costs,...
4. Write short notes on the applications of artificial neural networks in image processing.
What are the functions of a finance manager of a small firm?
Q1. (a) Name the types of reactions that organic compounds undergo (b) Differentiate between (i) electrophile and nucleophile
CH4 Br, Ligtht Q2. (a) CH3Br + HBr Propose a mechanism for the reaction; indicating initiation, propagation and termination.
Q4. Complete the following reactions by drawing the structure(s) of the product(s) formed.
Consider a one-year, 10-percent coupon bond with a face value of $1,000 issued by a private corporation. The one-year risk-free rate is 10 percent. The corporation has hit on hard times, and the...
Annual dividends of ATTA Corp grew from $0.96 in 2005 to $1.76 in 2017. What was the annual growth rate?
Question 2 (a)Trial balances play important role in preparation of financial accounts but as any other system they have their own limitations. As a consultant advice your company on the limitations...
The traditional income statement for Wheat Company shows sales $900,000, cost of goods sold $500,000, and operating expenses $200,000. Assuming all costs and expenses are 75% variable and 25% fixed,...
List seven key differences between Managerial Accounting and Financial Accounting. (Note for each point you need to indicate what happens under Managerial accounting and what happens under Financial...

At year-end, your company has cash of ($11,800), receivables of ($47,700), inventory of ($36,200), and prepaid expenses

Question:

Step by Step Answer:

Financial And Managerial Accounting

Students also viewed these Business questions