Mayfield Corporation has provided the following financial data: Balance SheetAssets Current assets: Cash$228,000 Accounts receivable, net 241,000 Inventory 204,000 Prepaid expenses 11,000 Total current assets 684,000 Plant and equipment, net 670,000 Total assets$1,354,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable$162,000 Accrued liabilities 53,000 Notes payable, short term 46,000 Total current liabilities 261,000 Bonds payable 102,000 Total liabilities 363,000 Stockholders' equity: Common stock, $4 par value 362,000 Additional paid-in capital 81,000 Retained earnings 548,000 Total stockholders' equity 991,000 Total liabilities & stockholders' equity$1,354,000 The company’s acid-test (quick) ratio is closest to:

Given: Total current assets =$684000Inventory =$204000Prepaid expense =$11000Total current…

Answered: Mayfield Corporation has provided the…

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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Question

Mayfield Corporation has provided the following financial data:

Balance Sheet
Assets
Current assets:
Cash	$	228,000
Accounts receivable, net		241,000
Inventory		204,000
Prepaid expenses		11,000
Total current assets		684,000
Plant and equipment, net		670,000
Total assets	$	1,354,000

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	162,000
Accrued liabilities		53,000
Notes payable, short term		46,000
Total current liabilities		261,000
Bonds payable		102,000
Total liabilities		363,000
Stockholders' equity:
Common stock, $4 par value		362,000
Additional paid-in capital		81,000
Retained earnings		548,000
Total stockholders' equity		991,000
Total liabilities & stockholders' equity	$	1,354,000

The company’s acid-test (quick) ratio is closest to:

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