Question
Cornerstone Exercise 8-33 Liquidity Ratios XYZ's financial statements contain the following information: Cash $300,000 Accounts receivable 650,000 Inventory 800,000 Marketable securities 100,000 Accounts payable $500,000
Cornerstone Exercise 8-33 Liquidity Ratios
XYZ's financial statements contain the following information:
| Cash | $300,000 |
| Accounts receivable | 650,000 |
| Inventory | 800,000 |
| Marketable securities | 100,000 |
| Accounts payable | $500,000 |
| Accrued expenses | 150,000 |
| Long-term debt | 1,000,000 |
Required:
Round answers to two decimal places.
1. What is its current ratio?
2. What is its quick ratio?
3. What is its cash ratio?
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Accounting Concepts And Applications
Authors: K. Fred Skousen, W. Steve Albrecht, James D. Stice, Earl K. Stice
7th Edition
0538876247, 978-0538876247
