Pritchett Co. reported the following year-end data: cash of $15,000; short-term investments of $5,000; accounts receivable (current)
Question:
Pritchett Co. reported the following year-end data: cash of $15,000; short-term investments of $5,000; accounts receivable (current) of $8,000; inventory of $20,000; prepaid (current) assets of $6,000; and total current liabilities of $20,000. Compute the
(a) Current ratio
(b) Acid-test ratio.
Round to one decimal.
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a The current ratio is 27 b The acidtest ratio is 17 Explanation a ...View the full answer
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