Total assets are $12.0 million, with $4.0 million being long-term assets. Current liabilitiesare $2.5 million and total liabilities are $6.5 million. The current ratio would be closest to:a. 1.6.b. 1.8.c. 3.2.d. 4.8.

Total assets are $12.0 million, with $4.0 million being long-term assets. Current liabilitiesare $2.5 million and total liabilities are $6.5 million. The current ratio would be closest to:a. 1.6.b. 1.8.c. 3.2.d. 4.8.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 15MCQ: Hummel Inc. has $30,000 in current assets and $15,000 in current liabilities. What is Hummels...

See similar textbooks

Related questions

Q: Sumer company liabilities were (560,000) dinars and its capital (440,000) dinars, so what is the…

A: Formula: Assets=Liabilities+Capital

Q: If for the most recent year, a firm's RNOA is 17.5%, its sales were $2,000,000, its asset turnover…

A: Return on operating assets is the return earned over operating assets.

Q: Net income example Formula: Net Income = Revenue – Expenses Total assets are $2,500,000, and…

A: Given that, Total assets = $2,500,000 Current liabilities = $800,000 Long-term Liabilities =…

Q: 1. If current assets amounted to P600,000 and current liabilities amounted to P200,000, what is the…

A: Introduction: Current ratio: Division of current liabilities with current Assets derives the current…

Q: If current assets are $112,000 and current liabilities are $56,000, what is the current ratio?A. 200…

A: Current ratio is one of the liquidity ratio being held by the business. It shows how much current or…

Q: s funded by both debt and equity with a debt to equity ratio of 100%. If Gs Co. has a retained…

A: In this given case, debt to equity ratio is 100% which means debt is 100% of equity , so this lead…

Q: Use the following information to calculate, to one decimal place, the return on assets (ROA) for…

A: Formula: Return on Assets = Profit / Average Assets.

Q: Determine the total expenses based on the following data; ASSETS RM72,000 CAPITAL RM70,00o0 REVENUES…

A: Total Expenses: An expense in accounting is the money spent, or costs incurred, by a business in…

Q: Assume XYZ total assets $1,000,000 and net fixed $600,000. But current liabilities $200,000.…

A: The amount invested by the firm to have future benefits is known as asset. The asset can be a…

Q: 1. If current assets are P270,000 and total assets are P810,000, what percentage of total assets are…

A: Solution:- Calculation of the percentage of total assets are current assets as follows:-…

Q: how much would be the total assets

A: (Since you have posted multiple questions, we will solve the first question for you. For the…

Q: Ace Industries has current assets equal to $3 million. The company's current ratio is 1.5, and its…

A: CURRENT LIABILITIES : CURRENT ASSETS = $3,000,000 CURRENT RATIO = CURRENT ASSET / CURRENT…

Q: If the value of the monetary assets at the beginning and at the end of the financial year is OMR…

A: CPP is current purchasing power of accounting, which saya that all historical cost accounts should…

Q: accounts payable are $35,000, and total liabilities of $150,000. Calculate Novack's working capital…

A: Novack Company Novack’s working capital = Current asset – Current liabilities = $100,000 – 75,000 =…

Q: rm has long-term debt of $46,400, fixed assets of $35,246, cash of $4,120, accounts payable $7,360,…

A: Working capital, also known as net working capital (NWC), is the difference between a company's…

Q: If current assets are Php 270,000 and total assets are Php810,000,what percentage of total assets ae…

A: Current assets are assets that are either in cash or can be converted into cash into short period of…

Q: intensity ratio of 1.08, a current ratio of 1.25, and current assets of $138,000. What is the profit…

A: Profit Margin: It is a measure of profitability for the business. It is the ratio of net profit to…

Q: If the net working capital is 73.5 and the difference between current assets and current liabilities…

A: Working capital is the capital required by a firm to run the daily operation smoothly. Working…

Q: If Assets is 60,000= Liabilities is (5,000) then should it be 55,000

A: Accounting Equation- Accounting Equation in simple expressions is a balancing entry i.e. for each…

Q: XY Co has development expenditure of $500,000. Its policy is to amortise development expenditure at…

A: Given the following information: Development Expenditure: $500,000 Amortization: 2% per annum…

Q: If Current Assets are $103,000, Property and Equipment is $130,000, Current Liabilities are $61,000,…

A: Current assets: Current assets are all those assets which are expected to be sold or used as a…

Q: ESS Company's current liabilities are P50,000, its long-term liabilities are P150,000, and its…

A: Long term assets are those assets which are being held by the business for longer period of time.…

Q: Current Assets = 10,000 Current Liabilities = 5,000, Long Term Liabilities = 5,000 and Fixed Assets…

A: Current ratio, also known as the working capital ratio is a ratio used to measure the liquidity of a…

Q: ASSETS EQUITIES P 500,000 1,500,000 Current assets Current liabilities P 200,000 Long-term…

A: Return on Current Assets = 7% Return on Fixed Assets = 16% Cost of Current liabilities = 2% Cost of…

Q: Assume that debt service expenditures are $12.6 million and "own source" revenues are $84 million.…

A: Debt service revenue ratio = Debt service / revenue

Q: What are the annual sales for adorn with $0.5 M in liabilities a total debt ratio of 0.5 and an…

A: Computation of total assets as follows: Hence, the total assets are $1 million.

Q: Justine Company has current assets of P400,000 and current liabilities of P500,000. Justine…

A: The liquidity ratio calculates a company's ability to pay short-term or one-year obligations. The…

Q: Southern Style Realty has total assets of $485,390, net fixed assets of $250,000, current…

A: Formula: Total debt ratio = Total debts / Total Assets

Q: 10. If long-term liabilities are P300,000 and total assets are P2,100,000, what percentáge of tötal…

A: Long term liabilities as a percentage of total assets = Long term liabilities / Total assets

Q: Thickburger's net fixed assets = $200,000, total assets = $400,000, inventory =$50,000 and current…

A: Calculation of Current Ratio and Quick Ratio:The current ratio is 4 and quick ratio is 3.50.Excel…

Q: The Inside Door has total debt of $208,600, total equity of $343,560, and a return on equity of…

A: Return on assets is determined to know the quantum of benefits an entity can receive by using its…

Q: assets are financed with common he company has. Extreme's currer Issets equal $150,000, and its…

A: “Hey, as a particular question is highlighted, it is assumed that you are asking help for this…

Q: A company has cash, $80,000; temporary investments, $20,000; net receivables, $60,000; and…

A: Quick or acid-test ratio: The financial ratio which evaluates the ability of a company to pay off…

Q: If current assets are $112,000 and current liabilities are $56,000, what is the current ratio?

A: Current ratio is calculated as the ratio of current assets and current liabilities.

Q: How much is the return on plan assets during the year? c. 101,000 a. 51,000 b. 81,000 d. 1,000

A: Solution:- Actual Return :- An actual return refers to the actual gain or loss an investor…

Q: Given cash of 3 million; accounts payable of 5 million, gross profit of 30 million, sales of 20…

A: Current ratio = Current assets/Current liabilities

Q: Let the period profit of Demir Ticaret Sanayi A.Ş be 60.000 TL and its paid-in capital is 200.000…

A: Legal reserve: It is a reserve which is maintained as per company law. It is a statutory reserve.

Q: A firm has net working capital of $550, net fixed assets of $2.296, sales of $6.600, and current…

A: Total assets of refers to the addition of total current assets and total fixed assets possessed by…

Q: Ace Industries has current assets equal to $10 million. The company's current ratio is 2.0, and its…

A: Current assets are referred to as those assets which has the characteristic of readily convertible…

Q: Given : Total Assets :120.000, Long Term Liabilities : 20.000, Current Assets :80.000, and, Current…

A: Ratio analysis is referred to as quantitative method for gaining an insight into the liquidity,…

Q: s of

A: The statement is True

Q: A. • Current assets is PHP2,000, current liabilities is PHP3,500. What is current ratio? • Inventory…

A: The question is related to Ratio Analysis. The Current Ratio and Quick Ratio are as under:- 1.…

Q: The following information relates to A Co for the last financial year. Revenue $200 million Asset…

A: We have the following information: Revenue: $200 million Asset turnover: 10 times Interest payable:…

Q: The earnings before interest and tax is $794 million, The depreciation is $75 million, and taxes are…

A: The term depreciation refers to the process of systematically allocating the cost of an asset over…

Q: a companys current assets are 23,310, its quick assets are 13,860 and it current liabilities are…

A: Quick Ratio helps an organization to assess its short-term liquidity. It is calculated by dividing…

Q: If current assets are $112,000 and current liabilities are $56,000, what is the current ratio? A.…

A: Introduction: Current ratio: It tells the ability of the company to pay its short term obligations…

Q: If equity is $420,000 and liabilities are $200,000, then assets equal: Multiple Choice $420,000.

A: The question is based on the concept of Financial Accounting.

Q: If current assets are 112,000 and current liabilities are 56,000.00 what is the current ratio?

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: If for the most recent year, a firm's RNOA is 17.5%, its sales were $2,000,000, its asset turnover…

A: Return on Net Asset: It helps in comparing the company’s performance by comparing it with other…

Question

Total assets are $12.0 million, with $4.0 million being long-term assets. Current liabilities
are $2.5 million and total liabilities are $6.5 million. The current ratio would be closest to:
a. 1.6.
b. 1.8.
c. 3.2.
d. 4.8.

Video Video

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!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions

Hummel Inc. has $30,000 in current assets and $15,000 in current liabilities. What is Hummels current ratio? a. 3 c. 1 b. 2 d. 0.5
Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next 5 years of $122,300. What is Chasses free cash flow and cash flow adequacy ratio? a. $94,300 and 0.77, respectively c. $130,100 and 1.06, respectively b. $94,300 and 0.82, respectively d. $165,900 and 1.36, respectively
If Current Assets are $103,000, Property and Equipment is $130,000, Current Liabilities are $61,000, and Long-Term Liabilities are $105,000, the current ratio is
If current assets are 112,000 and current liabilities are 56,000.00 what is the current ratio?
Calculate the current ratio in each of the following separate cases. Current Assets Current Liabilities Case 1 $ 75,000 $ 30,000 Case 2 $161,500 $ 85,000 Case 3 $ 45,000 $ 53,000 Case 4 $132,000 $127,000 Case 5 $ 99,000 $110,000
The following information is available from the annualreport of Frixell, Inc.: Currentliabilities . . . . $300,000Operatingincome . . . . . 240,000Net income . . . . 80,000 Currentassets . . . . $ 480,000Average totalassets . . . . 2,000,000Average totalequity . . . . 800,000Which of the following statements are correct? (More thanone statement may be correct.)a. The return on equity exceeds the return on assets.b. The current ratio is 0.625 to 1.
Using the following facts to calculate the Current Ratio, and the Debt Ratio: Ending Total Assets = $705,000; Ending Total Liabilities = $360,000; Ending Current Assets = $295,000; and Long Term Liabilities = $210,000
ABC has the following current assets: cash, $102 million; receivables, $94 million; inventory, $182 million; other current assets, $18 million. ABC also has the following liabilities: accounts payable, $98 million; long-term debt, $23 million. Based on these amounts, what is the acid-test ratio ? Numeric Response:?????????
Assuming that fixed assets of a company are USD 150, current assets are USD 50, and equity is USD 40, calculate the value of liabilities.
If current assets are Php 270,000 and total assets are Php810,000,what percentage of total assets ae current assets?
Expressed as a percentage, what would be a company's current ratio if net fixed assets are Ph1,230,000; current assets, P368,400; current liabilities, Ph120,00 and other liabilities, Ph65,000 a. 307% b. 450% c. 603% d. 860%
Under Armour has the following current assets: cash, $102 million; receivables, $94 million; inventory, $182 million; and other current assets, $18 million. Under Armour has the following liabilities: accounts payable, $98 million; current portion of long-term debt, $35 million; and long-term debt, $23 million. Based on these amounts, calculate the current ratio and the acid-test ratio for Under Armour.