Question: C Will Current ratio, increase, decrease or stay the same. I think my answers are correct, can you check them please? Roost and Sing Corp.'s
C
Will Current ratio, increase, decrease or stay the same. I think my answers are correct, can you check them please?
Roost and Sing Corp.'s CFO has decided to take a closer look at the firm's short-term assets and liabilities. Roost and Sing Corp.'s balance sheet follows. Balance Sheet $200,000 $170,000 Cash Accounts payable $110,000 $55,000 Accounts receivable Accruals $170,000 Notes payable $135,000 Inventory Total current assets $480,000 Total current liabilities $360,000 $350,000 Long-term debt Net plant and equipment $420,000 Total common equity $190,000 $900,000 Total liabilities and equity $900,000 Total assets The value of Roost and Sing Corp.'s working capital is $480,000 while its net working capital is $120,000 The value of Roost and Sing Corp.'s net operating working capital is $255,000 Roost and Sing Corp.'s current ratio is 1.33x If Roost and Sing Corp. decides to purchase inventory on account, its current ratio will increase
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