Kate Company has current assets equal to $120,500,000. Of these, $42,000,000 is cash, $28,000,000 is accounts receivable,

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Kate Company has current assets equal to $120,500,000. Of these, $42,000,000 is cash, $28,000,000 is accounts receivable, $15,500,000 is marketable securities, and the remainder is inventories. Current liabilities total $42,250,000.

Required:

1. Compute the current ratio.

2. Compute the quick (acid-test) ratio.

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Managerial Accounting The Cornerstone Of Business Decision Making

ISBN: 9780357715345

8th Edition

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

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Question Posted: Jul 26, 2022 02:34 AM

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Kate Company has current assets equal to $120,500,000. Of these, $42,000,000 is cash, $28,000,000 is accounts receivable,

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Managerial Accounting The Cornerstone Of Business Decision Making

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