Answer each of the questions in the following unrelated situations.

(a) The current ratio of a company is 5:1 and its acid-test ratio is 1:1. If the inventories and prepaid items amount to $545,000, what is the amount of current liabilities?

Current Liabilities

$enter current liabilities in dollars

(b) A company had an average inventory last year of $208,000 and its inventory turnover was 6. If sales volume and unit cost remain the same this year as last and inventory turnover is 8 this year, what will average inventory have to be during the current year? (Round answer to 0 decimal places, e.g. 125.)

Average Inventory

$enter the average inventory in dollars rounded to 0 decimal places

(c) A company has current assets of $82,000 (of which $39,000 is inventory and prepaid items) and current liabilities of $39,000. What is the current ratio? What is the acid-test ratio? If the company borrows $14,000 cash from a bank on a 120-day loan, what will its current ratio be? What will the acid-test ratio be? (Round answers to 2 decimal places, e.g. 2.50.)

Current Ratio

enter the ratio rounded to 2 decimal places

:1

Acid Test Ratio

enter the ratio rounded to 2 decimal places

:1

New Current Ratio

enter the ratio rounded to 2 decimal places

:1

New Acid Test Ratio

enter the ratio rounded to 2 decimal places

:1

(d) A company has current assets of $575,000 and current liabilities of $217,000. The board of directors declares a cash dividend of $178,000. What is the current ratio after the declaration but before payment? What is the current ratio after the payment of the dividend? (Round answers to 2 decimal places, e.g. 2.50.)

Current ratio after the declaration but before payment

enter the ratio rounded to 2 decimal places

:1

Current ratio after the payment of the dividend

enter the ratio rounded to 2 decimal places

:1