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Favor Company has a current ratio of 2.15 on December 31. On that date the company's current assets are as follows: Cash and cash equivalents
Favor Company has a current ratio of 2.15 on December 31. On that date the company's current assets are as follows: Cash and cash equivalents $28,000 Short-term investments 87,000 Accounts receivable (net) 125,000 Inventory 178,500 Prepaid expenses 11,500 Current assets $430,000 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 on December 31? (Round to the nearest dollar.) $ 0 b. What is the firm's working capital on December 31? $ 0 c. What is the quick ratio on December 31? (Round to two decimals.) O d. What is Bell's operating-cash-flow-to-current-liabilities ratio? (Round to two decimals.) 0
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