Common-Size Balance Sheets for Company A, Company B, and Sector Average Company Company Sector A B...

 

Transcribed Image Text:

Common-Size Balance Sheets for Company A, Company B, and Sector Average Company Company Sector A B Average ASSETS Total assets Current assets Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Prepaid expenses Total current assets Property, plant, and equipment, net Goodwill Other assets 5 5 5 15 5 35 40 25 0 100 5 0 15 20 15 55 35 0 10 100 7 2 12 16 11 48 37 8 7 100 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable Short-term debt Accrued expenses Total current liabilities. Long-term debt Other non-current liabilities Total liabilities Total shareholders' equity Total liabilities and shareholders' equity The quick ratio for Company A is closest to: 10 25 0 35 45 0 80 20 100 10 10 5 25 20 10 55 45 100 10 15 3 28 28 7 63 37 100 Common-Size Balance Sheets for Company A, Company B, and Sector Average Company Company Sector A B Average ASSETS Total assets Current assets Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Prepaid expenses Total current assets Property, plant, and equipment, net Goodwill Other assets 5 5 5 15 5 35 40 25 0 100 5 0 15 20 15 55 35 0 10 100 7 2 12 16 11 48 37 8 7 100 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable Short-term debt Accrued expenses Total current liabilities. Long-term debt Other non-current liabilities Total liabilities Total shareholders' equity Total liabilities and shareholders' equity The quick ratio for Company A is closest to: 10 25 0 35 45 0 80 20 100 10 10 5 25 20 10 55 45 100 10 15 3 28 28 7 63 37 100

Answer rating: 100% (QA)

The quick ratio or acid test ratio is one of the liquidity ratios used by companies to assess the... View the full answer