15-12

EXERCISE 15-12 Selected Financial Measures for Assessing Liquidity L015-2 Norsk Optronics, ALS, of Bergen, Norway, had a current ratio of 2.5 on June 30 of the current year. On that date, the company's assets were: Cash $ 90,000 Accounts receivable, net 260,000 Inventory 490,000 Prepaid expenses 10,000 Plant and equipment, net 800.000 Total assets $1,650,000 Required: 1. What was the company's working capital on June 302 2. What was the company's acid-test ratio on June 30 3. The company paid an account payable of S40,000 immediately after June 30. What effect did this transaction have on working capital? Show computations b. What effect did this transaction have on the current ratio? Show computations Problems connect PROBLEM 15-13 Effects of Transactions on Various Financial Ratlos L015-2.LO15-3, LO15-4