Current position analysis Čurrent Position AnalysisThe following items are reported on a company's balance sheet:Cash$314,400Marketable securities245,600Accounts receivable (net)304,600Inventory117,900Accounts payable393,000Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place.a. Current ratiob. Quick ratio

Name: Current position analysis Čurrent Position AnalysisThe following items
Uploaded: 2022-11-18T00:26:54.000Z
Channel: Bartleby
Description: Current position analysis Čurrent Position AnalysisThe following items are reported on a company's balance sheet:Cash$314,400Marketable securities245,600Accounts receivable (net)304,600Inventory117,900Accounts payable393,000Determine (a) the current

Answered: Čurrent Position Analysis The following…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 33CE: Liquidity Ratios NWAs financial statements contain the following information: Note: Round answers to...

See similar textbooks

Related questions

Question

Practice Pack

Current position analysis

Čurrent Position Analysis
The following items are reported on a company's balance sheet:
Cash
$314,400
Marketable securities
245,600
Accounts receivable (net)
304,600
Inventory
117,900
Accounts payable
393,000
Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place.
a. Current ratio
b. Quick ratio

Expert Solution

Step 1 Introduction

Current Ratio: This ratio indicates that measures whether or not a firm has enough resources to meet its short term obligation.

Formula

Quick Ratio: This ratio measures the ability of a company to pay its current liability through its near cash or quick assets.

Quick assets are those assets that can easily and very quickly be converted into cash.

Step 2 b) Statement showing the current assets and current liabilities

Particular	Amount ($)
Current Assets
Cash	314,400
Marketable Securities	245,600
Account Receivable	304,600
Inventory	117,900
Current Assets	982,500
Current Liability
Account Payable	393,000
Current Liability	393,000

Current ratio = 2.5:1

Step 3 Answer

Answer: 2.5:1

Learn your way

Includes step-by-step video

Step by step

Solved in 5 steps with 4 images

Better your learning with

Practice Pack

Better your learning with

Practice Pack

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