ance sheet of Raconteurs, Inc., is as follows: Raconteurs, Inc. Balance Sheet (S millions) Current assets:...

Transcribed Image Text:

ance sheet of Raconteurs, Inc., is as follows: Raconteurs, Inc. Balance Sheet (S millions) Current assets: Cash and marketable securities Accounts receivable Inventory Total current assets Current liabilities: Accrued wages and taxes Accounts payable Notes payable Total current liabilities $ 10 40 60 $110 $5 35 30 $ 70 The most recent bal- a. Calculate Raconteurs' current ratio and acid-test (quick) ratio. b. Benchmark ratios for the current and acid-test (quick) ratios are 1.50 and 1.20, respectively. What can you say about the liquidity of Raconteur's operations based on these two ratios? ance sheet of Raconteurs, Inc., is as follows: Raconteurs, Inc. Balance Sheet (S millions) Current assets: Cash and marketable securities Accounts receivable Inventory Total current assets Current liabilities: Accrued wages and taxes Accounts payable Notes payable Total current liabilities $ 10 40 60 $110 $5 35 30 $ 70 The most recent bal- a. Calculate Raconteurs' current ratio and acid-test (quick) ratio. b. Benchmark ratios for the current and acid-test (quick) ratios are 1.50 and 1.20, respectively. What can you say about the liquidity of Raconteur's operations based on these two ratios?

Answer rating: 100% (QA)

a To calculate Raconteurs Incs current ratio and acidtest quick ratio you can use the following form... View the full answer