Answered step by step
Verified Expert Solution
Question
1 Approved Answer
help please Answer each of the questions in the following unrelated situations. (a) The current ratio of a company is 6:1 and its acid-test ratio
help please
Answer each of the questions in the following unrelated situations. (a) The current ratio of a company is 6:1 and its acid-test ratio is 1:1.1 the inventories and prepaid items amount to $456,000, what is the amount of current liabilities? Currentliabilities $ (b) A company had an average inventory last year of $200,000 and its inventory turnover was 5 . If sales volume and unit cost remain the same this year as last and inventory turnover is 8 this year, what will average inventory have to be during the current year? Average inventory $ (c) A company has current assets of $97,000 (of which $37,000 is inventory and prepaid items) and current liabilities of $37,000, What is the current ratio? What is the acid-test ratio? If the company borrows $17,000 cash from a bank on a 120 -day loan, what will its current ratio be? What will the acid-test ratio be? (Round answers to 2 decimal places, eg. 2.50) Current ratio Acid-test ratio New current ratio New acid-test ratio 1 11 11 1 (d) A company has current assets of $49,000 and current liabilities of $226,000. The board of directors declares a cash dividend of $183,000. What is the current ratio after the declaration but before payment? What is the current ratio after the payment of the dividend? (Round answers to 2 decimal places, eg. 2.50) Current ratio after the declaration but before payment 1 Current ratio after the payment of the dividend 1 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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