Question
Data from Dunshee Corporation's most recent balance sheet appear below: Year 2 Year 1 Current assets: Cash $ 136 $ 106 Accounts receivable, net 282
Data from Dunshee Corporation's most recent balance sheet appear below:
| Year 2 | Year 1 | |
|---|---|---|
| Current assets: | ||
| Cash | $ 136 | $ 106 |
| Accounts receivable, net | 282 | 302 |
| Inventory | 108 | 128 |
| Prepaid expenses | 16 | 16 |
| Total current assets | $ 542 | $ 552 |
| Total current liabilities | $ 254 | $ 250 |
Sales on account in Year 2 amounted to $1,320 and the cost of goods sold was $820.
The acid-test (quick) ratio at the end of Year 2 is closest to:
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Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
13th edition
978-1285868806, 1285868803, 978-1305691254, 978-1305465640, 1305465644, 978-1285866307
