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Ahli Companys year-end balance sheets show the following: 2019 2018 2017 Cash . . . . . . . . . . . . .
Ahli Companys year-end balance sheets show the following:
2019
2018
2017
Cash . . . . . . . . . . . . . . . . . . . .
61,600
71,250
73600
Accounts receivable, net
177000
125000
98400
Merchandise inventory.
223000
165000
106000
Prepaid expenses
19400
18750
8000
Plant assets, net
555000
510000
459000
Total assets
1036000
890000
745000
Accounts payable
257800
150500
98500
Long-term notes payable secured
by mortgages on plant assets
195000
205000
165000
Common stock, $10 par value
325000
325000
325000
Retained earnings
258200
209500
156500
Total liabilities and equity
1036000
890000
745000
Required:
Compare the year-end short-term liquidity position of this company at the end of 2019 and 2018 by computing the:
(a) Current ratio and (b) Acid-test ratio. Comment on the ratio
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The Software Audit Guide
Authors: John W. Helgeson
1st Edition
0873897730, 978-0873897730
