Chantelle Company has current assets equal to $1,000,000. Of these, $500,000 is cash, $200,000 is accounts receivable,

Question:

Chantelle Company has current assets equal to $1,000,000. Of these, $500,000 is cash, $200,000 is accounts receivable, $175,000 is inventory, and the remainder is marketable securities. Current liabilities total $800,000.

Required:
1. Calculate the current ratio.
2. Calculate the quick ratio (acid-test ratio).

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

Step by Step Answer:

Answer rating: 50% (8 reviews)

1 2 You first need to calculate marketable securities by subtracting ...View the full answer

Answered By

Rashul Chutani

I have been associated with the area of Computer Science for long. At my university, I have taught students various Computer Science Courses like Data Structures, Algorithms, Theory of Computation, Digital Logic, System Design, and Machine Learning. I also write answers to questions posted by students in the area of and around Computer Science. I am highly fortunate to receive great feedback on my teaching skills that keeps me motivated. Once a student sent me an email stating that I had explained to him a concept better than his professor did. I believe in the fact that "Teaching is the best way to learn". I am highly fascinated by the way technology nowadays is solving real-world problems and try to contribute my bit to the same. Besides tutoring, I am a researcher at the Indian Institute of Technology. My present works are in the area of Text Summarization and Signal and Systems. Some of my achievements include clearing JEE Advanced with an All India Rank of 306 out of 1.5 million contesting candidates and being the Department Ranker 1 at my University in the Department of Computer Science and Engineering. I look forward to providing the best Tutoring Experience I can, to the student I teach.

5.00+ 1+ Reviews 10+ Question Solved

Related Book For book-img-for-question

Managerial Accounting The Cornerstone Of Business Decision Making

ISBN: 9780357715345

8th Edition

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

See More Books

Question Posted: Jul 26, 2022 02:35 AM

See More Questions

Chantelle Company has current assets equal to $1,000,000. Of these, $500,000 is cash, $200,000 is accounts receivable,

Question:

Step by Step Answer:

1 2 You first need to calculate marketable securities by subtracting ...View the full answer

Managerial Accounting The Cornerstone Of Business Decision Making

Students also viewed these Business questions