Question
The following items are reported on a company's balance sheet: Line Item Description Amount Cash $296,600 Marketable securities 185,000 Accounts receivable (net) 121,000 Inventory 127,000
The following items are reported on a company's balance sheet:
| Line Item Description | Amount |
|---|---|
| Cash | $296,600 |
| Marketable securities | 185,000 |
| Accounts receivable (net) | 121,000 |
| Inventory | 127,000 |
| Accounts payable | 228,000 |
Determine (a) the current ratio and (b) the quick ratio. Round your answers to one decimal place.
Step by Step Solution
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Step: 1
To calculate the current ratio and quick ratio we need to use the following formulas a C...
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Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
13th edition
978-1285868806, 1285868803, 978-1305691254, 978-1305465640, 1305465644, 978-1285866307
