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please help with the following question E8-26 (similar to) Abanaki Carpets reported the following amounts in its 2018 financial statements. The 2017 figures are given
please help with the following question
E8-26 (similar to) Abanaki Carpets reported the following amounts in its 2018 financial statements. The 2017 figures are given for comparison. 5 Click the icon to view the comparative financial information.) Data Table Read the requirements Requirement 1. Calculate Abanaki's acid-test ratio for 2018. (Round to two decimals.) Determine whether Abanaki's acid-test ratio improved or de used: Cash = Cash including cash equivalents; ST invest. = short-term investments. Round the acid test ratio to two decimals, X.XX.) 2018 2017 Calculate the acid-test ratio for both years Balance sheet-partial Current Assets (Cash + ST invest. + Net current receivables) Total current liabilities Acid-test ratio Cash $ $ 8,000 113000 2018 115000 = 2017 12,500 Short-term Investments Accounts Receivable 2,000 23,500 $ 73,000 51,000 (8,000) $ 60,000 (9,000) Less: Allowance for Bad Debts 65,000 192,000 4,000 188,000 4,000 277,500 Merchandise Inventory Prepaid Insurance Total Current Assets Total Current Liabilities Income statement-partial Net Sales (all on account) 272,500 113,000 115,000 661,200 729,000Step by Step Solution
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