Pritchett Company reported the following year-end data: $ 20,700 7,300 Cash Short-term investments Accounts receivable (current)...

 

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Pritchett Company reported the following year-end data: $ 20,700 7,300 Cash Short-term investments Accounts receivable (current) Inventory Prepaid (current) assets Total current liabilities. 11,600 38,100 18,000 33,000 Compute the (a) current ratio and (b) acid-test ratio. Pritchett Company reported the following year-end data: $ 20,700 7,300 Cash Short-term investments Accounts receivable (current) Inventory Prepaid (current) assets Total current liabilities. 11,600 38,100 18,000 33,000 Compute the (a) current ratio and (b) acid-test ratio.

Answer rating: 100% (QA)

a The current ratio is calculated by dividing current assets by current lia... View the full answer