Question: How would you find the current ratio? Acid test ratio? New current ratio? New acid test ratio? A company has current assets of $86,000 (of

How would you find the current ratio? Acid test ratio? New current ratio? New acid test ratio?

A company has current assets of $86,000 (of which $39,000 is inventory and prepaid items) and current liabilities of $39,000. What is the current ratio? What is the acid-test ratio? If the company borrows $17,000 cash from a bank on a 120-day loan, what will its current ratio be? What will the acid-test ratio be?

Step by Step Solution

★★★★★

3.56 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To find the current ratio divide current assets by current liabilities Current Ratio Current Assets ... View full answer

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 Accounting Questions!

Ques 1: What is the major complaint by firms concerning the Sarbanes-Oxley act of 2012? A. the legislative maximum allowable compensation for a CEO. B. the legal requirement to disclose project...

You are given the attached information about Fred pic, comprising summarized P&L accounts, summarized balance sheets and some suggested ratio calculations. You should note that there may be...

Answer each of the questions in the following unrelated situations. (a) The current ratio of a company is 5:1 and its acid-test ratio is 1:1. If the inventories and prepaid items amount to $500,000,...

Limits from graph In this problem we evaluate limits from the graph. Consider the graph of f given in [Figure 1]. Evaluate each of the following limits (or explain why if the limit does not exist)....

Using a spreadsheet for Problem 21, find the following: (a) What would be your recommendation if the weight for the transportation cost went down to 10 and the weight for union relations went up to...

Show that and deduce that Deduce that the modulus of error in the estimate for the sum obtained by computing 20 k=1 (-1)+1 k4 20 - k4 k=1 k=1 -100 -

Assuming the normality assumption is valid, compute a 95% confidence interval for ????1 when (a) ????1 = 2.3, ????????(????1) = 0.5, and ???? = 40. (b) ????1 = 11.8, ????????(????1) = 2.72, and ????...

How should Willie make his decision? It was late October of 2009, and Willis Willie Stahe was running late. As president of Midwest Universitys Computing and Information Systems student club, he had...

You are given the following information for MAYAR manufacturing company that considers investment in a new production line: Investment in the new production line $1,100,000 Useful life 12 years...

Bug-Off Exterminators provides pest control services and sells extermination products manufactured by other companies. Following is the company's unadjusted trial balance as of December 31, 2021....

Consider the following. f(x) = x + 20x - 125 (a) Write the polynomial as the product of factors that are irreducible over the rationals. f(x) = (b) Write the polynomial as the product of linear and...

The length and width of a cardboard are 26 ft and 12 ft. We are going to cut out the corners and fold up the sides to form a box. Determine the height of the box that will give maximum volume. Note:...

9.11 A multihospital system would like to compare the productivity of nursing staff in three of its cardiac intensive care units.Table EX 9.11 Measurement Unit 1 Unit 2 Unit 3 Annual Hours 185,200...

An inverted pendulum on a rolling disk is shown below. The disk has a radius R and mass M and is rolling on a at surface without slipping. The inverted pendulum consists of a rod of length L and mass...

PSY 575 - Culture and Design Assignment This is a two-part assignment. Part I: Make an argument, based on research, showing whether you believe organizational cultures can change and why. Include:...

1. yers Corporation has the following data related to direct materials costs for November: actual costs for 4,610 pounds of material, $5.00; and standard costs for 4,470 pounds of material at $6.10...

TRUE OR FALSE: 1. Banks with a significantly large share of fixed-interest rate home loans are less exposed to interest rate risks. 2. Although Australian banks are pretty big, they are not...

Segment Reporting'Theory Presented below is an excerpt from the financial statements of H. J. Heinz Company. Segment and Geographic Data the company is engaged principally in one line of...

Janet Jackson will invest $30,000 today. She needs $222,000 in 21 years. What annual interest rate must she earn?

A close friend of yours, who is a history major and who has not had any college courses or any experience in business, is receiving the financial statements from companies in which he has minor...

Beech Corporation has three finished products (related to three different product lines) in its ending inventory at December 31, Year 1. The following table provides additional information about each...

Quick Company acquired a piece of equipment in Year 1 at a cost of $100,000. The equipment has a 10-year estimated life, zero salvage value, and is depreciated on a straight-line basis. Technological...

Jefferson Company acquired equipment on January 2, Year 1, at a cost of $10 million. The equipment has a five-year life, no residual value, and is depreciated on a straight-line basis. On January 2,...