Question
Balance sheet data for Comet Energy as of 12/31/30 is as follows for Lease AA: Leasehold costs $775,000 Less: Accumulated DD&A ($280,000) Net leasehold costs
Balance sheet data for Comet Energy as of 12/31/30 is as follows for Lease AA:
Leasehold costs | $775,000 |
Less: Accumulated DD&A | ($280,000) |
Net leasehold costs | $495,000 |
Wells and related E&F—IDC | $3,700,000 |
Less: Accumulated DD&A—IDC | ($1,600,000) |
Net wells and related E&F—IDC | $2,100,000 |
Wells and related E&F—L&WE | $2,050,000 |
Less: Accumulated DD&A—L&WE | ($310,000) |
Net wells and related E&F—L&WE | $1,740,000 |
Comet’s activities during 2031 related to Lease AA were as follows:
Exploratory dry hole drilled | $925,000 |
Development dry hole drilled | $1,010,000 |
Tanks, separators, etc., installed | $380,000 |
Production | 370,000 bbl |
Proved reserves, 12/31/31 | 3,700,000 bbl |
Proved developed reserves, 12/31/31 | 3,400,000 bbl |
Requirement:
Calculate the Quick Ratio for 2031.
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