Given the following information, what is the firm's quick ratio? BALANCE SHEET INFORMATION Cash $730,000 Accounts...
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Given the following information, what is the firm's quick ratio? BALANCE SHEET INFORMATION Cash $730,000 Accounts receivable = (not given) Inventory = $1,170,000 Fixed Assets = $4,380,000 Total assets = $7,300,000 Accounts payable = (not given) Long-term debt = $3,700,000 Common stock = $800,000 Retained earnings = $2,410,000 Total liabilities and equity = $7,300,000 INCOME STATEMENT INFORMATION Sales = $14,600,000 = Operating expense = $12,410,000 EBIT = $2,190,000 Interest expense = $481,000 EBT = $1,709,000 Taxes $684,000 Net Income = $1,025,000 = Given the following information, what is the firm's quick ratio? BALANCE SHEET INFORMATION Cash $730,000 Accounts receivable = (not given) Inventory = $1,170,000 Fixed Assets = $4,380,000 Total assets = $7,300,000 Accounts payable = (not given) Long-term debt = $3,700,000 Common stock = $800,000 Retained earnings = $2,410,000 Total liabilities and equity = $7,300,000 INCOME STATEMENT INFORMATION Sales = $14,600,000 = Operating expense = $12,410,000 EBIT = $2,190,000 Interest expense = $481,000 EBT = $1,709,000 Taxes $684,000 Net Income = $1,025,000 =
Expert Answer:
Answer rating: 100% (QA)
ANSWER To calculate the quick ratio we need to know the current ratio and the inventory turnover The current ratio is calculated by dividing the curre... View the full answer
Related Book For
Financial Management Theory & Practice
ISBN: 9780324652178
12th Edition
Authors: Eugene BrighamMichael Ehrhardt
Posted Date:
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