Question: I have asked for help 3 times on this question and so far nobody has been able to proivde me with the correct answers. Can
I have asked for help 3 times on this question and so far nobody has been able to proivde me with the correct answers. Can someone help me? THe last question should have 3 different answers:
Data pertaining to the current position of Forte Company are as follows:
| Cash | $440,000 | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Marketable securities | 175,000 | ||||||||||||||||||||
| Accounts and notes receivable (net) | 335,000 | ||||||||||||||||||||
| Inventories | 700,000 | ||||||||||||||||||||
| Prepaid expenses | 44,000 | ||||||||||||||||||||
| Accounts payable | 180,000 | ||||||||||||||||||||
| Notes payable (short-term) | 230,000 | ||||||||||||||||||||
| Accrued expenses | 290,000 | ||||||||||||||||||||
| Required: | |||||||||||||||||||||
| 1. | Compute (A) the working capital The excess of the current assets of a business over its current liabilities. , (B) the current ratio A financial ratio that is computed by dividing current assets by current liabilities. , and (C) the quick ratio A financial ratio that measures the ability to pay current liabilities with quick assets (cash, marketable securities, accounts receivable). . Round ratios to one decimal place. | ||||||||||||||||||||
| 2. | Compute the working capital, the current ratio, and the quick ratio after each of the following transactions, and record the results in the appropriate columns of the table provided. Consider each transaction separately and assume that only that transaction affects the data given. Round to one decimal place.
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PLEASE HELP WITH THIS PART
2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions, and record the results in the appropriate columns of the table provided. Consider each transaction separately and assume that only that transaction affects the data given. Round to one decimal place.
|
| Working | Current | Quick |
|---|---|---|---|
| Transaction | Capital | Ratio | Ratio |
| A. | _____ | ____ | ____ |
| B. | ____ | _____ | ____ |
| C. | ____ | ____ | _____ |
| D. | _____ | ____ | ____ |
| E. | ____ | ____ | _____ |
| F. | _____ | _____ | _____ |
| G. | _____ | _____ | ____ |
| H. | _____ | _____ | _____ |
| I. | _____ | ______ | _______ |
| J. | ____ | _____ | ______ |
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