The partial balance sheet ($ in thousands) for Pizzeria Ristorante is presented below. Assets Liabilities and Equity Current assets: Current liabilities: Cash $ 60 Accounts payable $ 240 Accounts receivable (net) 170 Other liabilities 80 Notes receivable 50 Total current liabilities 320 Inventories 200 Long-term liabilities 110 Prepaid expenses 25 Total liabilities 430 Total current assets 505 Shareholders' equity: Plant assets (net) 255 Capital stock 150 Retained earnings 180 Total shareholders' equity 330 Total assets $ 760 Total liabilities and equity $ 760 Calculate the firm's acid-test ratio is (Round your answer to two decimal places.). Show your work.
The partial balance sheet ($ in thousands) for Pizzeria Ristorante is presented below. Assets Liabilities and Equity Current assets: Current liabilities: Cash $ 60 Accounts payable $ 240 Accounts receivable (net) 170 Other liabilities 80 Notes receivable 50 Total current liabilities 320 Inventories 200 Long-term liabilities 110 Prepaid expenses 25 Total liabilities 430 Total current assets 505 Shareholders' equity: Plant assets (net) 255 Capital stock 150 Retained earnings 180 Total shareholders' equity 330 Total assets $ 760 Total liabilities and equity $ 760 Calculate the firm's acid-test ratio is (Round your answer to two decimal places.). Show your work.
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 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
Related questions
Question
The partial balance sheet ($ in thousands) for Pizzeria Ristorante is presented below.
|
Assets |
|
|
|
Liabilities and Equity |
|
|
|
|
Current assets: |
|
|
|
Current liabilities: |
|
|
|
|
Cash |
$ |
60 |
|
Accounts payable |
$ |
240 |
|
|
|
|
170 |
|
Other liabilities |
|
80 |
|
|
Notes receivable |
|
50 |
|
Total current liabilities |
|
320 |
|
|
Inventories |
|
200 |
|
Long-term liabilities |
|
110 |
|
|
Prepaid expenses |
|
25 |
|
Total liabilities |
|
430 |
|
|
Total current assets |
|
505 |
|
Shareholders' equity: |
|
|
|
|
Plant assets (net) |
|
255 |
|
Capital stock |
|
150 |
|
|
|
|
|
|
|
|
180 |
|
|
|
|
|
|
Total shareholders' equity |
|
330 |
|
|
Total assets |
$ |
760 |
|
Total liabilities and equity |
$ |
760 |
|
Calculate the firm's acid-test ratio is (Round your answer to two decimal places.). Show your work.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub