Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Favor Company has a current ratio of 2 . 0 8 on December 3 1 . On that date its current assets are as follows:

Favor Company has a current ratio of 2.08 on December 31. On that date its current assets are as follows:
Cash and cash equivalents $29,000
Short-term investments 88,000
Accounts receivable (net)125,000
Inventory 179,950
Prepaid expenses 10,980
Current assets $432,930
Favor Company's current liabilities at the beginning of the year were $195,000 and during the year its operating activities provided a cash flow of $33,830.
a. What are the firm's current liabilities at December 31?
Round answer to the nearest whole number.
Answer
0
b. What is the firm's working capital on December 31?
Round answer to the nearest whole number.
Answer
0
c. What is the quick ratio on December 31?
Round answer to 2 decimal places.
Answer
0
d. What is the firm's operating-cash-flow-to-current-liabilities ratio?
Round answer to 2 decimal places.
Answer
0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Theory

Authors: William R Scott

5th Edition

0132072866, 978-0132072861

More Books

Students also viewed these Accounting questions

Question

How can sensitivity to pain be altered?

Answered: 1 week ago