Ask Question
16 April, 04:45

The following items are reported on a company's balance sheet:Cash $350,000Marketable securities 50,000Accounts receivable 200,000Inventory 240,000Accounts payable 300,000Determine the (a) current ratio, and (b) quick ratio? Round your answer to one digit after the decimal place.

+5
Answers (1)
  1. 16 April, 05:11
    0
    (a) 2.8

    (b) 2

    Explanation:

    (a) current assets = $350,000 + $50,000 + $200,000 + $240,000

    = $840,000

    current liabilities = $300,000

    Therefore,

    Current ratio = current assets : current liabilities

    Current ratio = $840,000 : $300,000

    = 2.8

    (b) quick ratio = (current assets - inventory) : current liabilities

    = ($840,000 - $240,000) : $300,000

    = 2
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The following items are reported on a company's balance sheet:Cash $350,000Marketable securities 50,000Accounts receivable 200,000Inventory ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers