Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cash $100,000 Current Liabilities $300,000 A/R $200,000 Long-term Liabilities $500,000 Inventory $400,000 Total Liabilites $800,000 Fixed Assets $900,000 Equity $800,000 Total Assets $1,600,000 Liabilites +
Cash $100,000 | Current Liabilities $300,000 |
A/R $200,000 | Long-term Liabilities $500,000 |
Inventory $400,000 | Total Liabilites $800,000 |
Fixed Assets $900,000 | Equity $800,000 |
Total Assets $1,600,000 | Liabilites + Equity $1,600,000 |
Calculate the following three ratios based on the above information:
a) current ratio
b) quick ratio
c) cash ratio
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started