Hi

Question here, acid test ratio, the formula is, ( cash + marketable securities + accounts receivable ) / ( current liabilities )

Question 1 [5 points] Your solution was: The following financial statements are for Weber Inc. Weber Inc. Weber Inc. Income Statement Balance Sheet For Years Ended December 31, 2014, 2013, and 2012 December 31, 2014, 2013, and 2012 2014 2013 2012 Assets 2014 2013 2012 10, 100 11,500 11,000 Sales.... 1,052,900 1,110,000 1,093,600 Cash Cost of goods sold.. 713,600 838,200 843,600 Short-term investments .. 67,000 62,000 61,000 Gross profit from sales 339,300 271,800 250,000 Accounts receivable, net. 53, 100 61,400 56, 100 61,500 62,400 75,800 Merchandise inventory. 20,600 17,800 16,200 Operating expenses.. 277,800 209,400 174,200 Prepaid expenses.. 2, 100 2,400 2, 100 Operating income. Interest expense.. 5,250 4,950 4,200 Notes receivable, due in 2018_ 13,500 11,500 11,500 Income before taxes. 272,550 204,450 170,000 Property, plant and equipment, net.. 180,000 207,000 198,000 346,400 373,600 355,900 Income taxes . 51,800 48,200 51,600 Total assets.... Net income... 220,750 156,250 118,400 Liabilities and Equity Accounts payable_ 37,800 40,900 40,400 Salaries payable. 11,000 9,500 11,200 Income taxes payable ... 43,000 40,400 40,800 Long-term note payable secured by mortgage on plant assets 82,000 87,000 83,000 Share capital. 170,000 160,000 180,000 Retained earnings. 2,600 35,800 500 Total liabilities and equity 346,400 373,600 355,900 Compute the acid-test ratio below, and indicate whether the change from year to year is favourable or unfavourable. For your analysis, assume that all other things have remained constant. Apply your analysis in very general terms. All values should be accurate to at least two decimal places. Ratio 2014 2013 Measure of Analysis Acid-test ratio .. 2.44 2.25 Immediate short-term debt-paying ability Unfavourable Marking: Acid-test ratio The acid-test ratio for 2013 should be 1.49, but you have not entered this. This will cost you 2 marks. The acid-test ratio for 2014 should be 1.42, but you have not entered this. This will cost you 2 marks. Total marks for this question: 1 Overall Mark: 1/5 Your mark of 1/5 has been recorded. DONE