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Is the above information that I have typed and taken a screenshot of the reason why $5,700 is $5,700? Question 14 SolidCo's balance sheet for
Is the above information that I have typed and taken a screenshot of the reason why $5,700 is $5,700?
Question 14 SolidCo's balance sheet for the most recent year es Current Assets Cash: 3,000 Marketable securities: 600 Accounts receivable: 6,000 Less allowance for bad debt: -300 Inventory: 1.200 Total Current Assets: 10.500 Current Liabilities Accounts payable: 4.000 Current portion of notes payable: 1,300 Other current accrued expenses: 2.000 Total Current Liabilities: 7.300 The quick ratio for this company is closest to: 1.32 1.27 1.26 1 Solution : Quick ratio = 1.27 is the correct option. Explaination: Quick Ratio = Cash + Marketable Securities + Accounts Receivable net of Allowances / Total Current Liability = $3000 + $600 + 55,700 / S7,300 =$9,300/$7,300 =1.27 Rule-2:--Adding positive numbers to negative numberscount forward the amount you're adding. Since $6,000, a positive number, is lesser than, $300, a negative number, the difference will-be- positive. = $6,000+(-$300) = $6,000-$3001 =-$5,7009
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