FREE Trial

Using the information in QS 4-14, calculate Tucker Companys quick ratio (round to two decimal places). Information

Question:

Using the information in QS 4-14, calculate Tucker Company€™s quick ratio (round to two decimal places).


Information 4-14

Calculate Tucker Company€™s current ratio, given the following information about its assets and liabilities (round to two decimal places) and compare it to the industry average current ratio of 2.2.

Accounts receivable... Accounts payable.. Long-term notes payable* Office supplies... Prepaid insurance $15,000 $20,000

Transcribed Image Text:

Accounts receivable... Accounts payable.. Long-term notes payable* Office supplies... Prepaid insurance $15,000 $20,000 10,000 1,800 Buildings.. 42,000 2,500 6,000 Unearned services revenue.. Cash.. 4,000 . *Due in three years.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 46% (13 reviews)

Quick ratio Cash Accounts R...View the full answer


answer-question-section
Answered By
tutor-profile-image
Anurag Agrawal
I am a highly enthusiastic person who likes to explain concepts in simplified language. Be it in my job role as a manager of 4 people or when I used to take classes for specially able kids at our university. I did this continuously for 3 years and my god, that was so fulfilling. Sometimes I've skipped my own classes just to teach these kids and help them get their fair share of opportunities, which they would have missed out on. This was the key driver for me during that time. But since I've joined my job I wasn't able to make time for my passion of teaching due to hectic schedules. But now I've made a commitment to teach for at least an hour a day. I am highly proficient in school level math and science and reasonably good for college level. In addition to this I am especially interested in courses related to finance and economics. In quest to learn I recently gave the CFA level 1 in Dec 19, hopefully I'll clear it. Finger's crossed :)
4.80+ 2+ Reviews 10+ Question Solved
Related Book For  book-img-for-question
Fundamental Accounting Principles Volume 1

Fundamental Accounting Principles Volume 1

ISBN: 9781259259807

15th Canadian Edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

See More Books
Question Posted:
See More Questions

Related Video

The current ratio is a financial ratio that measures a company\'s ability to pay its short-term obligations with its short-term assets. It is calculated by dividing a company\'s current assets by its current liabilities. The formula for calculating the current ratio is: Current Ratio = Current Assets / Current Liabilities Current assets are assets that can be converted to cash within one year, while current liabilities are debts that are due within one year. A current ratio of 1:1 or greater is generally considered good, as it indicates that a company has enough current assets to cover its current liabilities. A current ratio of less than 1:1 may suggest that a company may have difficulty meeting its short-term obligations. It\'s important to note that the current ratio is just one of many financial ratios that can be used to assess a company\'s financial health. It should be used in conjunction with other financial ratios and qualitative factors to make informed decisions about investing or lending to a company.

Students also viewed these Business questions

Demystifying Blockchain Your Beginner S Guide To Understanding The Fundamentals 1st Edition - ISBN: 979-8862058550 - Free Book