Question
The current asset section of STAR's Inc. balance sheet consists of cash, accounts receivable, and inventory. The Dec. 31, 2018 balance sheet reported the following:
The current asset section of STAR's Inc. balance sheet consists of cash, accounts receivable, and inventory. The Dec. 31, 2018 balance sheet reported the following:
Cash : $ 1,300,000
Inventory: $ 360,000
Long term Assets: $ 2,400,000
Shareholders Equity: $ 2,500,000
the Current ratio at the end of the year was 2.0. The debt to equity ratio was 1.4.
A. Determine the amount of current liabilities that is reported in the Dec 31, 2018 balance sheet.
B. Determine the amount of long term liabilities that is reported in the Dec. 31, 2018 balance sheet.
C. Determine the amount of accounts receivable that is reported in the Dec, 31, 2018 balance sheet
D. Determine the quick ratio at the end of 2018
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