1. A company with working capital of $247,290 and a current ratio of 2.2 pays a $83,740 short-term liability. The amount of working capital immediately after payment is

a.$247,290

b.$122,335

c.$369,625

d.$491,960

2. Use the information provided for Privett Company to answer the question that follows.

Privett Company
Accounts payable	$30,000
Accounts receivable	35,000
Accrued liabilities	7,000
Cash	25,000
Intangible assets	40,000
Inventory	72,000
Long-term investments	100,000
Long-term liabilities	75,000
Notes payable (short-term)	20,000
Property, plant, and equipment	400,000
Prepaid expenses	2,000
Temporary investments	36,000

Based on the data for Privett Company, what is the amount of working capital?

a.$113,000

b.$213,000

c.$153,000

d.$39,000

3. Use the information provided for Harding Company to answer the question that follow.

Harding Company
Accounts payable	$28,506
Accounts receivable	65,259
Accrued liabilities	6,978
Cash	17,317
Intangible assets	44,775
Inventory	72,515
Long-term investments	106,138
Long-term liabilities	73,248
Notes payable (short-term)	24,635
Property, plant, and equipment	636,763
Prepaid expenses	1,583
Temporary investments	31,374

Based on the data for Harding Company, what is the amount of quick assets?

a.$1,545,645

b.$48,691

c.$113,950

d.$757,969

4. Use the information provided for Privett Company to answer the question that follow.

Privett Company
Accounts payable	$30,000
Accounts receivable	35,000
Accrued liabilities	7,000
Cash	25,000
Intangible assets	40,000
Inventory	72,000
Long-term investments	100,000
Long-term liabilities	75,000
Notes payable (short-term)	20,000
Property, plant, and equipment	400,000
Prepaid expenses	2,000
Temporary investments	36,000

Based on the data for Privett Company, what is the quick ratio (rounded to one decimal place)?

a.2.9

b.1.7

c.1.0

d.1.1

5. Use the information provided for Harding Company to answer the question that follow.

Harding Company
Accounts payable	$37,399
Accounts receivable	71,048
Accrued liabilities	6,579
Cash	16,866
Intangible assets	43,949
Inventory	78,533
Long-term investments	119,852
Long-term liabilities	73,908
Notes payable (short-term)	22,955
Property, plant, and equipment	612,288
Prepaid expenses	1,868
Temporary investments	34,012

Based on the data for Harding Company, what is the quick ratio?

a.3

b.0.8

c.1.8

d.14.6

Answer rating: 100% (QA)

1 Since Net Working Capital Total current assets Total current liabilities Given 83740 is used to pa... View the full answer