Question: At December 3 0 , Year 3 , Vida Co . had cash of $ 2 0 0 , 0 0 0 , a current

At December 30, Year 3, Vida Co. had cash of $200,000, a current ratio of 1.5:1 and a quick ratio of .5:1. On December 31, Year 3, all cash was used to reduce accounts payable. How did these cash payments affect the ratios?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

On December 30, year 2, Vida Co. had cash of $200,000, a current ratio of 1.5:1 and a quick ratio of .5:1. On December 31, year 2, all cash was used to reduce accounts payable. How did these cash...

Q:

On December 30, year 2, Vida Co. had cash of $200,000, a current ratio of 1.5:1 and a quick ratio of .5:1. On December 31, year 2, all cash was used to reduce accounts payable. How did these cash...

Q:

ACC 700 Milestone Three Guidelines and Rubric The third milestone ThisistheproblemthatIneedhelpwithbutMilestoneOne. ACC 700 Final Project Guidelines and Rubric Overview As the final step in your...

Q:

ACC 700 Milestone Three Guidelines and Rubric The third milestone ThisistheproblemthatIneedhelpwithbutMilestoneOne. ACC 700 Final Project Guidelines and Rubric Overview As the final step in your...

Q:

In Merf's April 30, 20X1, balance sheet, a note receivable was reported as a noncurrent asset and the related accrued interest for eight months was reported as a current asset. Which of the following...

Q:

In Merf's April 30, 20X1, balance sheet, a note receivable was reported as a noncurrent asset and the related accrued interest for eight months was reported as a current asset. Which of the following...

Q:

SET A: In Merf's April 30, 20X1, balance sheet, a note receivable was reported as a noncurrent asset and the related accrued interest for eight months was reported as a current asset. Which of the...

Q:

In Merfs April 30, 20X1, balance sheet, a note receivable was reported as a noncurrent asset and the related accrued interest for eight months was reported as a current asset. Which of the following...

Q:

Solve the following In Merf's April 30, 20X1, balance sheet, a note receivable was reported as a noncurrent asset and the related accrued interest for eight months was reported as a current asset....

Q:

The following questions are adapted from a variety of sources including questions developed by the AICPA Board of Examiners and those used in the Kaplan CPA Review Course to study balance sheet...

Q:

Joseph Campbell is the President and Co-Founder of Campbell Corporation the worlds first biodegradable packaging for new cleaners and is reviewing the Profit and Loss Statement for the Fiscal Year...

Q:

What do the arrows in Fig. 10.1 represent?

Q:

Brief Exercise 8-22 Structuring a Keep-or-Drop Product-Line Problem with Complementary Effects Refer to the information for Hickory Company. Relevant fixed costs associated with this line include 80%...

Q:

A company issues 1,050 shares of its common stock for $33,600 cash. Prepare journal entries to record this event under each of the following separate situations.