I know in order to find the current ratio you divide your current assets by current liabilities. I also know in order to find the Quick ratio you divide your quick assets by your current liabilities. But everytime I enter a number it says incorrect. The following items are reported on a company's balance sheet:Cash$550,800Marketable securities430,300Accounts receivable (net)409,100Inventory331,000Accounts payable662,000Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place.a. Currentratiob. Quick ratio

Name: I know in order to find the current ratio you divide your current asse
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Description: I know in order to find the current ratio you divide your current assets by current liabilities. I also know in order to find the Quick ratio you divide your quick assets by your current liabilities. But everytime I enter a number it says incorrect.

Answered: The following items are reported on a…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 17BEA: Ernst Companys balance sheet shows total liabilities of 32,500,000, total stockholders equity of...

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I know in order to find the current ratio you divide your current assets by current liabilities. I also know in order to find the Quick ratio you divide your quick assets by your current liabilities. But everytime I enter a number it says incorrect.

The following items are reported on a company's balance sheet:
Cash
$550,800
Marketable securities
430,300
Accounts receivable (net)
409,100
Inventory
331,000
Accounts payable
662,000
Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place.
a. Current
ratio
b. Quick ratio

Expert Solution

Step 1

Ratio analysis helps to analyze the financial statements of the company. The management can take decisions on the basis of these ratios. It is also helpful to compare two or more financial statements.

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