Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alpha has the following adjusted trial balance at the end of the year. On the basis of its annual physical count of inventory at year-end,

Alpha has the following adjusted trial balance at the end of the year. On the basis of its annual physical count of inventory at year-end, Alpha determined that its ending inventory was $45,000. Calculate the current and quick ratios (rounded).

Debit Credit
Cash $ 9,000
Accounts receivable 15,000
Inventory 36,000
Supplies 2,000
Equipment 60,000
Accumulated depreciation $30,000
Accounts payable 12,000
Salaries payable 3,000
Utilities payable 6,000
Income tax payable 4,000
Unearned sales revenue 1,000
Common stock 56,000
Retained earnings 15,000
Dividends 3,000
Sales 130,000
Sales returns and allowances 6,000
Purchases 51,000
Purchase discounts 3,000
Rent expense 24,000
Salaries expense 45,000
Depreciation expense 6,000
Income tax expense 3,000
Total $260,000 $260,000

Group of answer choices

Current: 2.92 and Quick: 0.92

The correct answer is not listed.

Current: 2.73 and Quick: 0.92

Current: 2.31 and Quick: 0.96

Current: 2.65 and Quick: 0.96

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Cost Accounting For Health Care Organizations

Authors: Steven Finkler, Judith Baker, David Ward

3rd Edition

0810235447, 9780763738136

More Books

Students also viewed these Accounting questions

Question

What are the current HRM challenges in the textile industry?

Answered: 1 week ago