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Extracts from the balance sheet ( 000,000 ) of  A Co. as follows:       Current Assets                                                             Merchandise Inventory              P  77.1                Accounts Receivable                     50.1            Cash on Hand and in                    85.0                            Creditors:  Amounts falling due                         within one year               70.2             Bank Overdraft                                             Other Creditors                     147.0    What is the current ratio and the acid test ratio of the co.?              Current ratio      Acid test ratio a. .96 .38 b. .96 .36 c. .98 .61 d. .98 .62

Extracts from the balance sheet ( 000,000 ) of  A Co. as follows:       Current Assets                                                             Merchandise Inventory              P  77.1                Accounts Receivable                     50.1            Cash on Hand and in                    85.0                            Creditors:  Amounts falling due                         within one year               70.2             Bank Overdraft                                             Other Creditors                     147.0    What is the current ratio and the acid test ratio of the co.?              Current ratio      Acid test ratio a. .96 .38 b. .96 .36 c. .98 .61 d. .98 .62

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 17BEA: Ernst Companys balance sheet shows total liabilities of 32,500,000, total stockholders equity of...
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Extracts from the balance sheet ( 000,000 ) of  A Co. as follows:

      Current Assets                                                 

           Merchandise Inventory              P  77.1    

           Accounts Receivable                     50.1

           Cash on Hand and in                    85.0                    

       Creditors:  Amounts falling due

                        within one year               70.2

            Bank Overdraft                       

                     Other Creditors                     147.0 

  What is the current ratio and the acid test ratio of the co.?

             Current ratio      Acid test ratio

a. .96 .38

b. .96 .36

c. .98 .61

d. .98 .62

 

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