Calculate working capital and current ratio Firm O has accounts receivable of $31,000, cash of $14,600, property, plant, and equipment of $320,000, merchandise inventory of $43,200, accounts payable of $22,100, other accrued liabilities of $7,500, common stock of $250,000, and retained earnings of $129,200.

Required:

Calculate Firm Nâs working capital and current ratio.

Question

Mullins

Business

8 September, 02:09

Calculate working capital and current ratio Firm O has accounts receivable of $31,000, cash of $14,600, property, plant, and equipment of $320,000, merchandise inventory of $43,200, accounts payable of $22,100, other accrued liabilities of $7,500, common stock of $250,000, and retained earnings of $129,200.

Required:

Calculate Firm Nâs working capital and current ratio.

+1

Answers (1)

Know the Answer?

Jaiden Rubio · Answer 1

Working capital=$59,200

Current ratio = 3 : 1

Explanation:

Current ratio = current assets / current liabilities

Current ratio = 31000 + 14600+432000 = 88800

Current liabilities = 22,100+7,500 = 29600

Working capital = Current asset - current liabilities

= 88800 - 29600=59200

Working capital=$59,200

Current ratio = Current asset / current liabilities

= 88800 / 29600 = 3 : 1

Current ratio = 3 : 1