Question
Bell Company has a current ratio of 2.4 on December 31. On that date the companys current assets are as follows: Cash $69,600 Short-term investments
Bell Company has a current ratio of 2.4 on December 31. On that date the companys current assets are as follows: Cash $69,600 Short-term investments 118,560 Accounts receivable (net) 408,000 Inventory 480,000 Prepaid expenses 27,840 Current assets $1,104,000 Bell Companys current liabilities at the beginning of the year were $336,000 and during the year its operating activities provided a cash flow of $135,000. a. What are the firms current liabilities on December 31? (Round to the nearest dollar.) $Answer 460000 b. What is the firms working capital on December 31? $Answer 644000 c. What is the quick ratio on December 31? (Round to two decimals.) Answer d. What is Bells operating-cash-flow-to-current-liabilities ratio? (Round to two decimals.) Answer
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