LoLo Lemon Company has current assets equal to $500,000. Of these, $300,000 is cash, $75,000 is accounts

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LoLo Lemon Company has current assets equal to $500,000. Of these, $300,000 is cash, $75,000 is accounts receivable, $125,000 is inventory, and the remainder is marketable securities. Current liabilities total $425,000.

Required:

1. Calculate the current ratio.

2. Calculate the quick ratio (acid-test ratio).

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Managerial Accounting The Cornerstone of Business Decision Making

ISBN: 978-1337115773

7th edition

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

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Question Posted: Jun 14, 2017 07:34 AM

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LoLo Lemon Company has current assets equal to $500,000. Of these, $300,000 is cash, $75,000 is accounts

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Managerial Accounting The Cornerstone of Business Decision Making

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