Data pertaining to the current position of Forte Company are as follows: Cash $412,500 Marketable securities 187,500 Accounts and notes receivable (net) 300,000 Inventories 700,000 Prepaid expenses 50,000 Accounts payable 200,000 Notes payable (short-term) 250,000 Accrued expenses 300,000 Required: 1. Compute (A) the working capital, (B) the current ratio, and (C) the quick ratio. Round ratios to one decimal place.
Data pertaining to the current position of Forte Company are as follows: Cash $412,500 Marketable securities 187,500 Accounts and notes receivable (net) 300,000 Inventories 700,000 Prepaid expenses 50,000 Accounts payable 200,000 Notes payable (short-term) 250,000 Accrued expenses 300,000 Required: 1. Compute (A) the working capital, (B) the current ratio, and (C) the quick ratio. Round ratios to one decimal place.
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 4PB
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Data pertaining to the current position of Forte Company are as follows:
Cash | $412,500 |
Marketable securities | 187,500 |
Accounts and notes receivable (net) | 300,000 |
Inventories | 700,000 |
Prepaid expenses | 50,000 |
Accounts payable | 200,000 |
Notes payable (short-term) | 250,000 |
Accrued expenses | 300,000 |
Required: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1. | Compute (A) the |
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2. | Compute the working capital, the current ratio, and the quick ratio after each of the following transactions, and record the results in the appropriate columns of the table provided. Consider each transaction separately and assume that only that transaction affects the data given. Round to one decimal place.
|
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