Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A firm has the following balance sheet as December 31, 2020. What is its current ratio? Cash $20,000 Short Term Investments $25,000 Accounts Receivable $10,000
A firm has the following balance sheet as December 31, 2020. What is its current ratio?
Cash | $20,000 |
Short Term Investments | $25,000 |
Accounts Receivable | $10,000 |
Inventory | $50,000 |
Prepaid Expenses | $10,000 |
Property, Plant, and Equipment | $125,000 |
Total Assets | $240,000 |
Accounts Payable | $5,000 |
Deferred Revenue | $5,000 |
Short Term Debt | $10,000 |
Current Portion of Long Term Bonds Payable | $25,000 |
Long Term Bonds Payable | $65,000 |
Common Stock, Par | $1,000 |
Common Stock, Paid in Capital | $84,000 |
Retained Earnings | $45,000 |
Total Liabilities and Equity | $240,000 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started