Question: c. Use the following information to answer items i, ii, and iii : At December 31 a company's records show the following information: Cash Accounts

 c. Use the following information to answer items i, ii, and

c. Use the following information to answer items i, ii, and iii : At December 31 a company's records show the following information: Cash Accounts Receivable Inventory Prepaid Insurance Long-term Assets Accounts Payable Notes Payable due in 10 months Wages Payable Long-term Liabilities Stockholders' (Owner's) Equity $ 10,000 30,000 80,000 6,000 200,000 30,000 25,000 5,000 70.000 196,000 Calculate for: i. The Company's Current Ratio (3 marks) ii. The Quick Ratio or Acid test ratio (3 marks) iii. Working capital (4 marks) iv. What is the times interest earned? (4 marks)

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 Finance Questions!