Big Beautiful Photo Shop has asked you to determine whether the company's ability to pay current liabilities
Question:
Compute the following ratios for 2018 and 2017, and evaluate the company's ability to pay its current liabilities and total liabilities:
a. Current ratio
b. Cash ratio
c. Acid-test ratio
d. Debt ratio
e. Debt to equity ratio
Transcribed Image Text:
2018 2017 $ 58,000 $ 47,000 Cash Short-term Investments 34,000 Net Accounts Receivable 124,000 140,000 Merchandise Inventory 217,000 272,000 Total Assets 530,000 565,000 Total Current Liabilities 288,000 205,000 Long-term Notes Payable 40,000 50,000 Income from Operations 165,000 158,000 Interest Expense 41,000 55,000
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2018 2017 a Total current assets Total current liabilities 449000 288000 156 443000 205000 2...View the full answer
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Related Book For
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
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