Kannan Carpets, Inc. has asked you to calculate the company's quick ratio for 2016. All you have is a partial balance sheet and some assumptions. Using the information provided, calculate Kannan's quick ratio for 2016. Gross profit margin = 50%. Inventory turnover (COGS/Inv) = 5. 2001 sales = $3,000 Assets Liabilities & Equity Cash ? Accounts payable $50 AR $40 Accruals ? Inventory ? Long-term debt $400 Net fixed assets $500 Equity 250 Total assets $900 Total liab. & equity ?
Kannan Carpets, Inc. has asked you to calculate the company's quick ratio for 2016. All you have is a partial balance sheet and some assumptions. Using the information provided, calculate Kannan's quick ratio for 2016. Gross profit margin = 50%. Inventory turnover (COGS/Inv) = 5. 2001 sales = $3,000 Assets Liabilities & Equity Cash ? Accounts payable $50 AR $40 Accruals ? Inventory ? Long-term debt $400 Net fixed assets $500 Equity 250 Total assets $900 Total liab. & equity ?
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 14P
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Kannan Carpets, Inc. has asked you to calculate the company's quick ratio for 2016. All you have is a partial balance
sheet and some assumptions. Using the information provided, calculate Kannan's quick ratio for 2016. Gross profit
margin = 50%. Inventory turnover (COGS/Inv) = 5. 2001 sales = $3,000
Assets Liabilities & Equity
Cash ? Accounts payable $50
AR $40 Accruals ?
Inventory ? Long-term debt $400
Net fixed assets $500 Equity 250
Total assets $900 Total liab. & equity ?
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