Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Working Capital and Short Term Liquidity Ratios Bell Company has a current ratio of 2.85 (2.85:1) on December 31. On that date the company's current

image text in transcribed

Working Capital and Short Term Liquidity Ratios Bell Company has a current ratio of 2.85 (2.85:1) on December 31. On that date the company's current assets are as follows: Cash Short-term investments Accounts receivable (net Inventory $16,400 49,000 169,000 200,000 11,600 $446,000 Prepaid expenses Current assets Bell Company's current liabilities at the beginning of the year were $137,000 and during the year its operating activities provided a cash flow of $55,000 a. What are the firm's current liabilities on December 31? Round answer to the nearest whole number 156,491 b. What is the firm's working capital on December 31? Round answer to the nearest whole number 289,509 V C. What is the quick ratio on December 31? Round answer to 2 decimal places. 1.5 d. What is the Bell's operating-cash-flow-to-current-liabilities ratio? Round answer to 2 decimal places. Check

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Practical Approach With Data Analytics

Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton

2nd Edition

1119786045, 978-1119785996

More Books

Students also viewed these Accounting questions