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The following items are reported on a company's balance sheet: Cash $284,300 Marketable securities 102,600 Accounts receivable 261,100 Inventory 217,800 Accounts payable 282,800 Determine the (a) current ratio, and (b) quick ratio. Round your answers to one decimal place. a. Current ratio b. Quick ratio

The following items are reported on a company's balance sheet: Cash $284,300 Marketable securities 102,600 Accounts receivable 261,100 Inventory 217,800 Accounts payable 282,800 Determine the (a) current ratio, and (b) quick ratio. Round your answers to one decimal place. a. Current ratio b. Quick ratio

Managerial Accounting
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 6BE
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The following items are reported on a company's balance sheet: Cash $284,300 Marketable securities 102,600 Accounts receivable 261,100 Inventory 217,800 Accounts payable 282,800 Determine the (a) current ratio, and (b) quick ratio. Round your answers to one decimal place. a. Current ratio b. Quick ratio
Transcribed Image Text:The following items are reported on a company's balance sheet: Cash $284,300 Marketable securities 102,600 Accounts receivable 261,100 Inventory 217,800 Accounts payable 282,800 Determine the (a) current ratio, and (b) quick ratio. Round your answers to one decimal place. a. Current ratio b. Quick ratio
Expert Solution
Working:

Current assets = Cash + Marketable securities + Accounts receivable + Inventory

=284300+102600+261100+217800

= $865,800

Quick assets = Cash + Marketable securities + Accounts receivable

=284300+102600+261100

= $648,000

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