Brief Exercise 24-8 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 $520,000, what is the amount of current liabilities? Current Liabilities (b) A company had an average inventory last year of $212,000 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 (c) A company has current assets of $85,000 (of which $41.000 is inventory and prepaid items) and current liabilities of $41,000. 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 ansivers to 2 decimal places, e.g. 2.50.) Current Ratio Acid Test Ratio New Current Ratio Now Acid Tost Ratio (d) A company has current assets of $626,000 and current liabilities of $221,000. The board of directors declares a cash dividend of $166,000. 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 Current ratio after the payment of the dividend