Part of your job is to review customer requests for credit. You have three new credit applications on your desk and par analysis requires that the current ratios and quick ratios be compared. a. Complete the following schedule. (Round the final answers to 2 decimal places.) Account Kasta Nasta Dusta Cash $ 2,880 $ 2,280 $ 2,480 Current non-strategic investments $ 0 S 0 $ 1,420 Current receivables S 2,980 $ 1,540 $ 585 Inventory $ 2,140 $ 1,430 $ 12,220 Prepaid expenses S 405 $ 1,710 $ 4,580 Land S 5,850 S 6,930 $ 24,350 Current liabilities $ 3,810 $ 1,800 $ 10,040 Current ratio 1 :1 Quick ratio : 1 :1
Part of your job is to review customer requests for credit. You have three new credit applications on your desk and par analysis requires that the current ratios and quick ratios be compared. a. Complete the following schedule. (Round the final answers to 2 decimal places.) Account Kasta Nasta Dusta Cash $ 2,880 $ 2,280 $ 2,480 Current non-strategic investments $ 0 S 0 $ 1,420 Current receivables S 2,980 $ 1,540 $ 585 Inventory $ 2,140 $ 1,430 $ 12,220 Prepaid expenses S 405 $ 1,710 $ 4,580 Land S 5,850 S 6,930 $ 24,350 Current liabilities $ 3,810 $ 1,800 $ 10,040 Current ratio 1 :1 Quick ratio : 1 :1
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 10E: Accounts receivable analysis Xavier Stores Company and Lestrade Stores Inc. are large retail...
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Part of your job is to review customer requests for credit. You have three new credit applications on your desk and part of your analysis requires that the current ratlos and quick ratlos be compared.
Transcribed Image Text:Part of your job is to review customer requests for credit. You have three new credit applications on your desk and part of your
analysis requires that the current ratios and quick ratios be compared.
a. Complete the following schedule. (Round the final answers to 2 decimal places.)
Account
Kasta
Nasta
Dusta
Cash
2,880
2,280
S
2,480
Current non-strategic investments
0
0
S
1.420
Current receivables
2,980
1.540
989
Inventory
2,140
1.430
Prepaid expenses
405
1,710
4,580
S
5.850
6,930
24,350
Current liabilities
Current ratio
Quick ratio
3.810
1,800
10.040
1
1
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