The following information on current assets and current liabilities is for Belkin Company. Cash Accounts receivable...

Transcribed Image Text:

The following information on current assets and current liabilities is for Belkin Company. Cash Accounts receivable 3,428 $ 1,330 Prepaid expenses Accounts payable Inventory 5,300 Other current liabilities a. Compute Belkin's acid-test ratio. $ 500 5,200 900 b. If its competitor, Logit, has an acid-test ratio of 1.2, which company is better able to pay for current liabilities with its quick assets? Complete this question by entering your answers in the tabs below. Required A Required B Compute Belkin's acid-test ratio. Belkin's acid-test ratio Numerator: Denominator: = II < Required A = = II Acid-Test Ratio Acid-test ratio to 1 Required B > The following information on current assets and current liabilities is for Belkin Company. Cash Accounts receivable 3,428 $ 1,330 Prepaid expenses Accounts payable Inventory 5,300 Other current liabilities a. Compute Belkin's acid-test ratio. $ 500 5,200 900 b. If its competitor, Logit, has an acid-test ratio of 1.2, which company is better able to pay for current liabilities with its quick assets? Complete this question by entering your answers in the tabs below. Required A Required B Compute Belkin's acid-test ratio. Belkin's acid-test ratio Numerator: Denominator: = II < Required A = = II Acid-Test Ratio Acid-test ratio to 1 Required B >