Question
Liquidity Ratios You are evaluating the balance sheet for SophieLex's Corporation. From the balance sheet, you find the following balances: cash and marketable securities=$400,000. accounts
accounts receivable=$1,200,000; inventory=$2,100,000.
accrued wages and taxes=$500,000.
accounts payable=$800,000; and notes payable=$600,000
Calculate SophieLex's current ratio, quick ratio, and cash ratio.
Step by Step Solution
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Step: 1
To calculate the liquidity ratios for SophieLexs Corporation we need to use the following formulas 1 ...
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Understanding Financial Statements
Authors: Lyn Fraser, Aileen Ormiston
11th edition
133874036, 978-0133874037
