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Please show me how to solve for current ratio, acid-test ratio, and cash ratio. Thank you! Formula Ratio Liquidity: (i) Current ratio Current assets /
Please show me how to solve for current ratio, acid-test ratio, and cash ratio. Thank you!
Formula Ratio Liquidity: (i) Current ratio Current assets / Current liabilities 3.32 (Cash + Cash equivalents + STI + Net current receivables) / Current liabilities 2.52 (ii) Acid-test ratio (iii) Cash ratio (Cash + Cash equivalents) / Current liabilities 1.93 Top Notch Appliance-Coronado Balance Sheet December 31, 2018 Assets Current Assets: Cash $ 731,233 Petty Cash 300 Accounts Receivable $ 240,000 (14,400) 225,600 Less: Allowance for Bad Debts Merchandise Inventory 18,000 250 Office Supplies Prepaid Insurance Interest Receivable 1,500 6,533 280,000 Notes Receivable Total Current Assets $ 1,263,416 Property, Plant, and Equipment: Land 130,000 Building 310,000 (10,000) 300,000 Less: Accumulated Depreciation Building Store Fixtures 82,500 (5,500) 77,000 65,000 Less: Accumulated DepreciationStore Fixtures Office Equipment Accumulated DepreciationOffice Less: Equipment Total Property, Plant, and Equipment Intangible Assets: (26,000) 39,000 546,000 Franchise 45,900 Total Assets $ 1,855,316 Liabilities Current Liabilities: Accounts Payable $ 350,000 30,000 Interest Payable Total Current Liabilities $ 380,000 Long-term Liabilities: Notes Payable 300,000 Total Liabilities 680,000 Owner's Equity $ Balfort, Capital 1,175,316 $ 1,855,316 Total Liabilities and Owner's EquityStep by Step Solution
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