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The following information is available for Flanders and its two main competitors in the industry, Sanders and Anders: Flanders Sanders Anders Cash $ 9,800 $10,500
The following information is available for Flanders and its two main competitors in the industry, Sanders and Anders:
| Flanders | Sanders | Anders |
Cash | $ 9,800 | $10,500 | $26,500 |
Short-term investments | 6,400 | 8,200 | 12,500 |
Accounts receivable | 12,500 | 8,500 | 14,350 |
Merchandise inventory | 30,150 | 40,000 | 40,150 |
Prepaid expense | 900 | 6,750 | 2,450 |
Accounts payable | 19,400 | 13,750 | 26,800 |
Salaries payable | 1,200 | 3,500 | 6,250 |
Other current payables | 600 | 1,200 | 2,150 |
Required:
- Calculate the current ratio and acid-test ratio for each firm.
Flanders Sanders Anders
Current ratio:
Acid test Ratio:
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