Question
Current Ratio and Quick (Acid-Test) Ratio Jordan Company provided the following information: Current assets: Cash $13,695,000 Accounts receivable 7,429,000 Inventories 9,372,500 Total current assets $30,496,500
Current Ratio and Quick (Acid-Test) Ratio
Jordan Company provided the following information:
| Current assets: | ||
| Cash | $13,695,000 | |
| Accounts receivable | 7,429,000 | |
| Inventories | 9,372,500 | |
| Total current assets | $30,496,500 | |
| Current liabilities | $17,930,000 |
Required:
Note:Round answers to one decimal place.
1. Compute the current ratio.
2. Compute the quick (acid-test) ratio.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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
Managerial Accounting Decision Making and Motivating Performance
Authors: Srikant M. Datar, Madhav V. Rajan
1st edition
132816245, 9780132816243, 978-0137024872
