48. (Learning Objectives 1, 5: Reporting current liabilities) The top management of Pratt Marketing Services examines the following company accounting records at August 29, immedi- ately before the end of the year, August 31: Total current assets $ 324,700 324790 Non-current assets 1,067,500 $1,392,200 $/ 193,400 Total current liabilities 129880 Non-current liabilities 253,400 Owners' equity 945,400 $1,392,200- Suppose Pratt's management wants to achieve a current ratio of 2.5. How much in current liabili- ties should Pratt pay off within the next two days in order to achieve its goal? 6220
48. (Learning Objectives 1, 5: Reporting current liabilities) The top management of Pratt Marketing Services examines the following company accounting records at August 29, immedi- ately before the end of the year, August 31: Total current assets $ 324,700 324790 Non-current assets 1,067,500 $1,392,200 $/ 193,400 Total current liabilities 129880 Non-current liabilities 253,400 Owners' equity 945,400 $1,392,200- Suppose Pratt's management wants to achieve a current ratio of 2.5. How much in current liabili- ties should Pratt pay off within the next two days in order to achieve its goal? 6220
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Why the answer is (324700-x)/(193400-x)=2.5
Transcribed Image Text:E9-48. (Learning Objectives 1, 5: Reporting current liabilities) The top management of Hat
Marketing Services examines the following company accounting records at August 29, immedi-
ately before the end of the year, August 31:
Total current assets
$ 324,700
324790
Non-current assets
1,067,500
$1,392,200
Total current liabilities
$/193,400
129880
Non-current liabilities
253,400
Owners' equity
945,400
$1,392,200.
Suppose Pratt's management wants to achieve a current ratio of 2.5. How much in current liabili-
ties should Pratt pay off within the next two days in order to achieve its goal? 6220
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