Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Working Capital and Short Term Liquidity Ratios Ritter Company has a current ratio of 3.00 on December 31. On that date the company's current assets
Working Capital and Short Term Liquidity Ratios Ritter Company has a current ratio of 3.00 on December 31. On that date the company's current assets are as follows: Cash $32.000 Short-term investments 49.300 Accounts receivable (net) 170,000 Inventory 200,000 Prepaid expenses 11,600 Current assets 5462,900 Ritter Company's current liabilities at the beginning of the year were $150,000 and during the year its operating activities provided a cash flow of $60,000 a. What are the firm's current liabilities on December 31? $ 154,300 b. What is the firm's working capital on December 31? $ 308,600 c. What is the quick ratio on December 31? Round answer to 2 decimal places. 1.63 d. What is the Ritter's operating-cash-flow-to-current-liabilities ratio? Round answer to 2 decimal places. 0 X
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started