Question
Q1. ALPHA Company reported the following year-end information: Cash $ 52,000 Short-term investments 12,000 Accounts receivable 54,000 Inventory 325,000 Prepaid expenses 17,500 Accounts payable 106,500
Q1. ALPHA Company reported the following year-end information:
| Cash | $ 52,000 |
| Short-term investments | 12,000 |
| Accounts receivable | 54,000 |
| Inventory | 325,000 |
| Prepaid expenses | 17,500 |
| Accounts payable | 106,500 |
| Other current payables | 25,000 |
Instructions: 1- Explain the purpose of the acid-test ratio. 2- Calculate the acid-test ratio for ALPHA Company.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Essentials Of Cost Accounting For Health Care Organizations
Authors: Steven A. Finkler
1st Edition
0834205289, 978-0834205284
