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Big Brass Photo Shop has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2024 To answer this question, you gather the following data (Click the icon to view the data.) Read the requirements Data table Cash Short-term Investments Net Accounts Receivables Merchandise Inventory Total Assets Total Current Liabilities Long-term Notes Payable Income from Operations Interest Expense $ 2024 2023 56,000 $ 52,000 26,000 116,000 128,000 0 267,000 262,000 555,000 580,000 315,000 232,000 42,000 168,000 40,000 48,000 183,000 33,000 X Requirements Compute the following ratios for 2024 and 2023, and evaluate the company's ability to pay its current liabilities and total liabilities a. Current ratio b. Cash ratio c. Acid-test ratio d. Debt ratio e. Debt to equity ratio - X Big Brass Photo Shop has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2024 To answer this question, you gather the following data (Click the icon to view the data.) Read the requirements Data table Cash Short-term Investments Net Accounts Receivables Merchandise Inventory Total Assets Total Current Liabilities Long-term Notes Payable Income from Operations Interest Expense $ 2024 2023 56,000 $ 52,000 26,000 116,000 128,000 0 267,000 262,000 555,000 580,000 315,000 232,000 42,000 168,000 40,000 48,000 183,000 33,000 X Requirements Compute the following ratios for 2024 and 2023, and evaluate the company's ability to pay its current liabilities and total liabilities a. Current ratio b. Cash ratio c. Acid-test ratio d. Debt ratio e. Debt to equity ratio - X
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Answer rating: 100% (QA)
2024 a Current Ratio Current Assets Current Liabilities 56000 26000 267000 315000 148 b Cash Ratio Cash Shortterm Investments Current Liabilities 5600... View the full answer
Related Book For
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
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