JT Engineering’s current asset information for all four quarters of 2020 is shown below. JT maintained a constant $250,000 of current liabilities throughout the year. Based on the current ratio, in which quarter was JT least liquid? CURRENT ASSETS Q1 Q2 Q3 Q4 Cash $10,000 $8,500 $9,200 $9,000 Short-term Investments 72,000 75,000 69,000 70,000 Accounts Receivable 66,000 61,500 64,300 65,000 Inventory 110,000 112,000 112,000 111,500 Prepaid Expenses 20,000 21,500 20,100 21,400 TOTAL CURRENT ASSETS $278,000 $278,500 276,600 276,900 a.) Q3 b.) Q1 c.) Q4 d.) Q2
JT Engineering’s current asset information for all four quarters of 2020 is shown below. JT maintained a constant $250,000 of current liabilities throughout the year. Based on the current ratio, in which quarter was JT least liquid? CURRENT ASSETS Q1 Q2 Q3 Q4 Cash $10,000 $8,500 $9,200 $9,000 Short-term Investments 72,000 75,000 69,000 70,000 Accounts Receivable 66,000 61,500 64,300 65,000 Inventory 110,000 112,000 112,000 111,500 Prepaid Expenses 20,000 21,500 20,100 21,400 TOTAL CURRENT ASSETS $278,000 $278,500 276,600 276,900 a.) Q3 b.) Q1 c.) Q4 d.) Q2
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 19P
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JT Engineering’s current asset information for all four quarters of 2020 is shown below. JT maintained a constant $250,000 of current liabilities throughout the year. Based on the
|
CURRENT ASSETS
|
Q1
|
Q2
|
Q3
|
Q4
|
|---|---|---|---|---|
|
Cash
|
$10,000 | $8,500 | $9,200 | $9,000 |
|
Short-term Investments
|
72,000 | 75,000 | 69,000 | 70,000 |
|
Accounts Receivable
|
66,000 | 61,500 | 64,300 | 65,000 |
|
Inventory
|
110,000 | 112,000 | 112,000 | 111,500 |
|
Prepaid Expenses
|
20,000 | 21,500 | 20,100 | 21,400 |
|
TOTAL CURRENT ASSETS
|
$278,000 | $278,500 | 276,600 | 276,900 |
a.) Q3
b.) Q1
c.) Q4
d.) Q2
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