Answered: A company has current liabilities of…

A company has current liabilities of $500 Million, and its current ratio is 2.0. If the firm's quick ratio is 1.6, how much inventory does it have?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 7P: Ace Industries has current assets equal to 3 million. The companys current ratio is 1.5, and its...

See similar textbooks

Related questions

Q: How would you classify the tax system in Barbados.? State your reason

A: Barbados' tax system may be categorized as progressive, meaning that the tax rate rises as income…

Q: P22,000,000 and residual value of P4,000,000 and revised remaining life of 10 years. It is the…

A: As per the policy, the revaluation surplus is required to be transfer to retained earnings. The…

Q: Rite Packs manufactures backpacks. Its plant records include the following materials-related data:…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: 4. Prenda Inc. reported a net income of P750,000. The company has 250,000 shares of common stock and…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: The value of a share is given by the present value of which cash flow(s): O a. Future dividends only…

A: INTRODUCTION: A dividend is a monetary or non-monetary incentive given by a firm to its…

Q: On January 1, 2024, the general ledger of 3D Family Fireworks includes the following account…

Q: The equity section from the December 31, 2020 balance sheet of Kentucky Corporation appeared as…

A: The equity section comprises share capital balance, retained earnings, etc. The share dividend…

Q: Echo Corporation has provided the following data concerning its only product: Selling price Current…

A: Margin of safety sales is the excess of total sales over the Break even sales. Margin of safety…

Q: Weighted Average Method, Equivalent Units Goforth Company produces a product where all manufacturing…

A: The equivalent units represents the percentage of the work completed for the units. The units are…

Q: -irect materials -irect labor ariable manufacturing overhead ixed manufacturing overhead $9.50 $8.50…

A: Solution : Financial advantage or disadvantage from making is based on the difference of relevant…

Q: Base Ltd was incorporated on 1 January 20x0 with share capital of $50,000, comprising 50,000…

A: Lets understand the basics. The diluted earning per share is a measurement used for the determining…

Q: Discuss how tax residence and non-residence are generally charged to tax

Q: The balances in Sanchez Accounting Services' office supplies account on February 1 and February 28…

A: SUPPLIES Supplies serve as current assets until their use, and then they become expenses. Office…

Q: A building owned by Cake Corporation had suffered impairment in value, and an impairment loss of…

A: Impairment of an asset If the carrying value of an asset is more than the recoverable value then…

Q: Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 8…

A: Solution total amount of sales tax Vail Book Mart collected and paid for the year = Total sales *…

Q: The following transactions apply to Walnut Enterprises for Year 1, its first year of operations:…

A: Financial Statements - Financial Statement includes Income Statement, Statement of Stockholder's…

Q: es a 30% common stock dividend. Which of the following adjustments should be made when recording the…

A: Stock dividend is paid in the form the common stock out of the retained earnings. Stock dividend is…

Q: Tomasz purchased a new heating and air-conditioning system for his home and financed $9,100 at an…

A: Time value of money:— According to this concept, value of money in present day is greater than the…

Q: Don owns a restaurant in the downtown for 20 years and wanted to sell and retire. He got an offer…

A: When one company acquires another company's business, it typically involves the transfer of…

Q: Required information [The following information applies to the questions displayed below] Peper…

A: A journal entry is the act of recording any transaction, regardless of whether it's an economic one.…

Q: Inventory=$700. Net Fixed Assets-$1,759. Accounts rec-$192. Cash= $69. Accts payable=$210. How…

A: Any asset that can be assumed to be sold, used, or expended through regular company operations…

Q: Required information [The following information applies to the questions displayed below.] The…

A: Answer:- Partnership assets:- The financial resources that partners give when a partnership is…

Q: he following selected transactions apply to Topeca Supply for November and December, Year 1.…

A: Accounting equation is one of the fundamental concept being used in accounting. Three elements of…

Q: Cake Co. included the following items in inventory: Materials, P1,648,000 . Advances for materials,…

A: Inventory refers to the goods, materials, or products that a business holds for sale, production, or…

Q: Can you explain how you got common stock?

A: Common Stock - Common Stock includes amount given by the shareholders in consideration of shares…

Q: Isabel Company has an equipment costing P700,000 with an estimated residual value of P70,000 and an…

A: Solution: Cost = P700,000 Salvage = P70,000 Life = 6 Years Cost of Updration = P120,000…

Q: Yaren, a resident of Isabela Province had the following data for taxable year. (Exchange rate…

A: Taxable income is the amount of an individual's or a business's income that is subject to tax by a…

Q: During its first year of operation, K Corporation had a gross profit from operations of $180,000…

A: Operating loss: Operating loss is the amount that a company should record as a loss in the income…

Q: Reporting Bonds on the Balance Sheet Yale Corporation issued $36,000, 8% (cash interest payable…

A: This question is related to the topic of accounting for bonds, which is a subtopic of financial…

Q: Compute cash flows from operating activities for Carls Company under the indirect reporting format.…

A: Calculation of cash flow from operating activities

Q: On January 1, 2022, Betty DeRose, Inc. purchased equipment for $86,000. The equipment was assigned a…

A: Depreciation Expense - Depreciation Expense is an Expense incurred on the fixed assets of the…

Q: 12 One category of costs is described as "a cost that is specifically traceable to the segment being…

A: Cost is an expenditure that is incurred to manufacture and sell products and services.It is…

Q: The following selected transactions apply to Topeca Supply for November and December, Year 1.…

A: Solution : Sales tax is the amount to be collected from customer on behalf of government at the time…

Q: Global GPS industries assembles its GPS systems with the following costs. Each ors requires one…

A: PURCHASES BUDGET The purchase budget establishes the quantity and value of the various items of…

Q: On January 1, 2021, Cake Company acquired a factory equipment at a cost of P450,000. The equipment…

A: Lets understand the basics. As per IAS 36, "Impairement of assets", when recoverable amount of asset…

Q: What would be the marginal tax rate for a single person who has the following taxable income? 1.…

A: The income tax is levied based on the following slab: -

Q: Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 400,000 280,000…

A: Contribution margin is the margin that arrives at by reducing variable costs from sales.…

Q: The accountant of Cake Company is provided with the following information and was asked determine…

A: Inventory: The cost of material purchased with the motive of selling it by adding value to it is…

Q: bondholders. On that date, the fair value of a similar bond without the conversion feature is $870…

A: Conversion of Bonds It is the method of converting a bond into shares. It is dependent on…

Q: Marine Components produces parts for airplanes and ships. The parts are produced to specification by…

A: The overhead is applied to the production on the basis of the pre-determined overhead rate. The…

Q: (a) A computation of the amount of interest chargeable on each Partner's withdrawals for the year…

A: Accounting of Partnership Accounting for partnerships is the practise of documenting and summarising…

Q: Using the following information: a. Beginning cash balance on March 1, $82,000. b. Cash receipts…

A: A cash budget is a financial planning tool that helps businesses forecast their cash inflows and…

Q: rials costs ersion costs Cost $ 5,200 $ 8,500 rials costs ersion costs f 7,800 units were started…

A: Equivalent units of production are based on whole units and their percentage of completion. Cost per…

Q: Blossom Inc. had net income for the current year ending December 31, 2023 of $1,230,480. During the…

A: For finance and accounting purposes, when convertible bonds are issued with fixed interest rates…

Q: Current Attempt in Progress. Bramble Corporation borrowed $98.000 on November 1, 2025, by signing a…

A: Journal Entries Bramble corporation November 1, 2025: Bank debit $98,000 Interest Suspense…

Q: Eleanor Print Supplies, Inc., sells laser printers and supplies. Eleanor Print Supplies, Inc., is a…

A: Income Tax Expense - Income Tax Expense is tax charged on the income earned. It is an Expenses…

Q: What gain and net reduction in retained earnings would result from this property dividend?

A: Answer: To calculate the gain and net reduction in retained earnings resulting from the property…

Q: Madrigal Company constructed a building for its own use. Construction started on January 3, 2021…

A: According to PFRS, All the Borrowing costs that are directly attributable to the acquisition, or…

Q: Assume that a company's budgeted revenue per unit is $50. The company's planned level of activity…

A: Revenue variance is difference between the actual revenue and the flexible revenue. If the actual…

Q: Required information [The following information applies to the questions displayed below.] Clopack…

A: The equivalent units are calculated on the basis of the percentage of the work for the process…

Question

A company has current liabilities of $500 Million, and its current
ratio is 2.0. If the firm's quick ratio is 1.6, how much inventory
does it have?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Working Note #1

VIEW

Step 3 Working Note #2

VIEW

Step 4 Working Note #3

VIEW

Step 5 Final Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A company has current liabilities of $500 Million, and its current ratio is 2.0. If the firm’s quick ratio is 1.6, how much inventory does it have?
Morris Corporation has current liabilities of $800 million, and itscurrent ratio is 2.5. What is its level of current assets? ($2,000million) If this firm’s quick ratio is 2, how much inventory does ithave? ($400 million)
A firm with current assets of $85,750 and current liabilities of $62,958 would have: A. A current ratio of 1.37 B. $1.37 of current assets for every $1 of current liabilities C. A positive current ratio, dependant on the pace of inventory sales and lean repayments D. All of the above
A firm has annual sales of $100 million, $20 million of inventory, and $30 million of accounts receivable. What is its inventory turnover ratio?
Brilliant Corp. has total current liabilities of P22,000 and an inventory of P7,000. If its current ratio is 1.2, then what is Brilliant’s quick ratio?
A company has current liability of $500million, and its current ratio is 2.0. If the firm’s quick ratio is 1.2. How much inventory does it have? a. $400milliomb. $600milliomc. $300milliond. $500million
A company has current liability of $500million, and its current ratio is 2.0. If the firm’s quick ratio is 1.2. How much inventory does it have?a. $400milliomb. $600milliomc. $300milliond. $500million
Consider a firm with an annual net income of $30 million, revenue of $70 million and cost of goods sold of $35 million. If the balance sheet amountsshow $3.5 million of inventory and $800,000 of property, plant & equipment, what is the inventory turnover?
What is the inventory period for a firm with an annual cost of goods sold of P5million, P1.2 million in average inventory, and a cash conversion cycle of 75days?
Awkward Inc. currently has $2,145,000 in current assets and $858 in current liabilities. The company's managers want to increase the firm inventory, which will be financed by short-term note with the bank. What level of inventories can the firm carry without its current ratio falling below 2.0?
Oliver Incorporated has a current ratio equal to 1.6 and a quick ratio equal to 1.2. The company has $2 million in sales and its current liabilities are $1 million. What is the company’s inventory turnover ratio?
Highly Suspect Corp. has current liabilities of $409,000, a quick ratio of 1.40, inventory turnover of 4.00, and a current ratio of 3.50. What is the cost of goods sold for the company?