E13-6A

Working Capital and Short-Term Liquidity Ratios Bell Company has a current ratio of on December 31. On that date the company's current assets are as follows: Short-term investments . Accounts receivable (net). . Inventory. Prepaid Current assets . . $ 29,000 49,400 170.000 200.000 11,600 $460,000 Bell Company s current liabilities at the beginning of the year were $140,000 and during the year its operating activities provided a cash now of $60,000. a. What are the firm's current liabilities on December 3 1 ? b. What is the firm's working capital on December 3 1 ? c. What is the quick ratio on December 31 ? d. What is Bell's operating-cash-now-to-current-liabilities ratio? 3-7A. Accounts Receivable and Inventory Ratios Bell Company, whose current assets at Decemher