The current asset section of Stibbe Pharmaceutical Companys balance sheet included cash of $20,000 and accounts receivable
Question:
The current asset section of Stibbe Pharmaceutical Company’s balance sheet included cash of $20,000 and accounts receivable of $40,000. The only other current asset is inventory. The company’s current ratio is 2.0 and its acid-test ratio is 1.5. Determine the ending balance in inventory and total current liabilities.
Step by Step Answer:
Acidtest ratio Cash Shortterm investments AR Current liabilities 15 200...View the full answer
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 Business questions
-
The current asset section of Stibbe Pharmaceutical Company's balance sheet included cash of $20,000 and accounts receivable of $40,000. The only other current asset is inventories. The company's...
-
The current asset section of the Moorcroft Outboard Motor Company's balance sheet reported the following amounts: The average collection period for 2011 is 50 days. Required: Determine net sales...
-
The current asset section of the Moorcroft Outboard Motor Company's balance sheet reported the following amounts: __________________________________ 12/31/2018 ___________ 12/31/2017 Accounts...
-
PC Connection is a leading mail order retailer of personal computers. A recent financial report issued by the company revealed the following information: Merchandise inventory (beginning of the...
-
Combine the graphs and equations from questions 3 and 4 and determine the following: a. The equilibrium price of broadband Internet service b. The equilibrium quantity of broadband Internet service...
-
What is the concept underlying the current rate method of translation? What is the concept underlying the temporal method of translation? How does balance sheet exposure differ under these two...
-
Identify types of pension plans and their characteristics.
-
Jennifer Ross, an employee of Hampton Company, worked 44 hours during the week of February 9 through 15. Her rate of pay is $ 30 per hour, and she receives time- and- a- half for work in excess of 40...
-
A Comp-B Comp-A Fair V Book V $190,000 $130,000 $180,000 $100,000 $60,000 Fair V $191,357 $122,951 S198,753 $79,687 $19,138 book V $25,000 $45,000 $60,000 $40,000 $10,000 $23,598 $37,558 $68,591...
-
Twelve different message signals, each with a bandwidth of 10 kHz, are to be multiplexed and transmitted. Determine the minimum bandwidth required for each method if the multiplexing/modulation...
-
Hallergan Company produces car and truck batteries that it sells primarily to auto manufacturers. Dorothy Hawkins, the companys controller, is preparing the financial statements for the year ended...
-
At the end of 2024, Barker Corporations preliminary trial balance indicated a current ratio of 1.2. Management is contemplating paying some of its accounts payable balance before the end of the...
-
Derive the Laplace transform of the ramp function \(F(t)=b t, t \geq 0\), starting from the definition of Laplace transform.
-
Determine dy/dr when 3x+4y = 3.
-
Problem 3. Doping a Semiconductor The following chemical scheme is used to introduce P-atoms as a dopant into a semiconductor - a silicon chip. POCI3 Cl POCI 3 vapor P P SiO2 + P(s) CVD coating Si...
-
The system shown in the following figure is in static equilibrium and the angle is equal to 34 degrees. Given that the mass1 is 8 kg and the coefficient of static friction between mass1 and the...
-
Pre-Writing step for a report for your boss on Richard Hackman's statement that using a team to complete a complex project may not be the best approach. Review your classmates' contributions to the...
-
For the graph of the equation x = y - 9, answer the following questions: the x- intercepts are x = Note: If there is more than one answer enter them separated by commas. the y-intercepts are y= Note:...
-
What is the percentage of interest the IRS was charging on assessment (amount of unpaid tax liability) during March 2018? You might want to do this research by going to the IRS Web site...
-
Clark, PA, has been engaged to perform the audit of Kent Ltd.s financial statements for the current year. Clark is about to commence auditing Kents employee pension expense. Her preliminary enquiries...
-
Identify and briefly describe the three categories of cash flows reported in the statement of cash flows.
-
Explain what is meant by noncash investing and financing activities pertaining to the statement of cash flows. Give an example of one of these activities.
-
Explain what is meant by noncash investing and financing activities pertaining to the statement of cash flows. Give an example of one of these activities.
-
Which of the following statements regarding traditional cost accounting systems is false? a. Products are often over or under cost in traditional cost accounting systems. b. Most traditional cost...
-
Bart is a college student. Since his plan is to get a job immediately after graduation, he determines that he will need about $250,000 in life insurance to provide for his future wife and children...
-
Reporting Financial Statement Effects of Bond Transactions (please show me how you got the answers) Lundholm, Inc., which reports financial statements each December 31, is authorized to issue...
Study smarter with the SolutionInn App