Cornerstone Exercise 8-33 (Algorithmic)Liquidity RatiosXYZ's financial statements contain the following information:Cash$369,000Accounts receivable795,400Inventory975,800Marketable securities123,000Accounts payable631,000Accrued expenses189,000Long-term debt1,010,000Round answers to two decimal places.Required:1. What is its current ratio?2. What is its quick ratio? 3. What is its cash ratio?

Current ratio is a liquidity ratio which tells if company is able to pay short term liabilities…

Answered: Cornerstone Exercise 8-33 (Algorithmic)…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.4.8P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

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Cornerstone Exercise 8-33 (Algorithmic)
Liquidity Ratios

XYZ's financial statements contain the following information:

Cash	$369,000
Accounts receivable	795,400
Inventory	975,800
Marketable securities	123,000
Accounts payable	631,000
Accrued expenses	189,000
Long-term debt	1,010,000

Round answers to two decimal places.

Required:

1. What is its current ratio?

2. What is its quick ratio?

3. What is its cash ratio?

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