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Please help me with this! 8. ABC Corporation's quick assets are $5,888,000, its cun'ent assets are $11,700,000 and its current liabilities are $8,000,000. Its acid-test
Please help me with this!
8. ABC Corporation's quick assets are $5,888,000, its cun'ent assets are $11,700,000 and its current liabilities are $8,000,000. Its acid-test ratio equals: a. 0.50. b. 0.68. c. 0.?4. d. 1.50. e. 2.20. 9. If a company '3. acid test ratio in year 1 is .37 and in year 2 is .46, is their liquidity better or worse in year 2'? Place a check mark in your response: Better Worse 10. Using the following yearend information for ABC Company, calculate the current ratio and acidtest ratio for the business: Short-term investments \"=03 Accounts receivable 54:03 325,0 Inventory 00 Prepaid expenses 17:53 106,5 :- Accounts payable 00 Other current payabl es 25,03 a. 1.80 and 1 b. 1.97 and 1.52 c. 2.73 and 1.52 d. 3.50 and 0.90 e. 1.80 and 0.90 11. The gross margin ratio: a. Is also called the net prot ratio. h. Indicates the percent of sales revenue remaining aer covering the cost of the goods sold. c. Is also called the prot margin. d. Is a measure of liquidity and should exceed 2.0 to be acceptable. 8. Should be greater than 1 for merchandising companiesStep by Step Solution
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