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1. A company with working capital of $247,290 and a current ratio of 2.2 pays a $83,740 short-term liability. The amount of working capital immediately

1. A company with working capital of $247,290 and a current ratio of 2.2 pays a $83,740 short-term liability. The amount of working capital immediately after payment is

Round your answer to the nearest dollar.

a.$247,290

b.$122,335

c.$369,625

d.$491,960

2. Use the information provided for Privett Company to answer the question that follow.

Privett Company
Accounts payable $30,000
Accounts receivable 35,000
Accrued liabilities 7,000
Cash 25,000
Intangible assets 40,000
Inventory 72,000
Long-term investments 100,000
Long-term liabilities 75,000
Notes payable (short-term) 20,000
Property, plant, and equipment 400,000
Prepaid expenses 2,000
Temporary investments 36,000

Based on the data for Privett Company, what is the amount of working capital?

a.$113,000

b.$213,000

c.$153,000

d.$39,000

3. Use the information provided for Harding Company to answer the question that follow.

Harding Company
Accounts payable $28,506
Accounts receivable 65,259
Accrued liabilities 6,978
Cash 17,317
Intangible assets 44,775
Inventory 72,515
Long-term investments 106,138
Long-term liabilities 73,248
Notes payable (short-term) 24,635
Property, plant, and equipment 636,763
Prepaid expenses 1,583
Temporary investments 31,374

Based on the data for Harding Company, what is the amount of quick assets?

a.$1,545,645

b.$48,691

c.$113,950

d.$757,969

4. Use the information provided for Privett Company to answer the question that follow.

Privett Company
Accounts payable $30,000
Accounts receivable 35,000
Accrued liabilities 7,000
Cash 25,000
Intangible assets 40,000
Inventory 72,000
Long-term investments 100,000
Long-term liabilities 75,000
Notes payable (short-term) 20,000
Property, plant, and equipment 400,000
Prepaid expenses 2,000
Temporary investments 36,000

Based on the data for Privett Company, what is the quick ratio (rounded to one decimal place)?

a.2.9

b.1.7

c.1.0

d.1.1

5. Use the information provided for Harding Company to answer the question that follow.

Harding Company
Accounts payable $37,399
Accounts receivable 71,048
Accrued liabilities 6,579
Cash 16,866
Intangible assets 43,949
Inventory 78,533
Long-term investments 119,852
Long-term liabilities 73,908
Notes payable (short-term) 22,955
Property, plant, and equipment 612,288
Prepaid expenses 1,868
Temporary investments 34,012

Based on the data for Harding Company, what is the quick ratio (rounded to one decimal place)?

a.3

b.0.8

c.1.8

d.14.6

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