Extracts from the balance sheet of Atlantis Inc. are as follows: 2018Assets Current Assets: Cash and Cash Equivalents30,000Accounts Receivable, Net65,000Merchandise Inventory50,000Total Current Assets145,000Long-Term Investments150,000Property, Plant, and Equipment, Net250,000Total Assets545,000Total Current Liabilities150,000Compute the acid test ratio.

Acid test ratio = Current assets - Inventory / Current liabilities It is measured to determine…

Answered: Extracts from the balance sheet of…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 62BE: Brief ExerciseRatio Analysis Valiant Corporation has $1,800,000 in total liabilities, $800,000 of...

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Extracts from the balance sheet of Atlantis Inc. are as follows:

	2018
Assets
Current Assets:
Cash and Cash Equivalents	30,000
Accounts Receivable, Net	65,000
Merchandise Inventory	50,000
Total Current Assets	145,000
Long-Term Investments	150,000
Property, Plant, and Equipment, Net	250,000
Total Assets	545,000
Total Current Liabilities	150,000

Compute the acid test ratio.

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