Scarlett Company provided the following information: Current assets: Cash ..................... $1,100,000 Accounts receivable ............ 2,700,000 Inventories ..............

Question:

Scarlett Company provided the following information:

Current assets:

Cash ..................... $1,100,000

Accounts receivable ............ 2,700,000

Inventories .............. 1,600,000

Total current assets ........... $5,400,000

Current liabilities ........... $2,000,000

Required:

Round answers to one decimal place.

1. Compute the current ratio for Scarlett Company.

2. Compute the quick (acid-test) ratio for Scarlet Company.

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Cornerstones of Managerial Accounting

ISBN: 978-0324660135

3rd Edition

Authors: Mowen, Hansen, Heitger

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Question Posted: Feb 04, 2012 12:22 AM

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Scarlett Company provided the following information: Current assets: Cash ..................... $1,100,000 Accounts receivable ............ 2,700,000 Inventories ..............

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