Question
[The following information applies to the questions displayed below.] The following accounts are taken from the financial statements of Paradise Tropical Resorts at June 30,
[The following information applies to the questions displayed below.]
The following accounts are taken from the financial statements of Paradise Tropical Resorts at June 30, 2019. (Amounts are in millions.)
| Accounts Payable | $ 1,720 |
|---|---|
| Accounts Receivable | 370 |
| Cash | 3,450 |
| Common Stock | 11,800 |
| Equipment | 3,400 |
| Income Tax Expense | 370 |
| Interest Expense | 120 |
| Notes Payable (long-term) | 1,250 |
| Prepaid Rent | 1,450 |
| Retained Earnings | 3,300 |
| Service Revenue | 8,800 |
| Short-Term Investments | 7,000 |
| Software | 2,400 |
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3-a. Determine the current ratio.
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3-b. Were the current assets sufficient to cover the current liabilities at June 30, 2019?
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Auditing and Assurance services an integrated approach
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
16th edition
978-0134075754, 134075757, 134065824, 978-0134065823
