1. Current assets: Cash..... $102,000 Temporary investments .... 48,000 Accounts and notes receivable (net).. 120,000 Inventories..... 36,000 Prepaid expenses.. 24,000 Intangible assets Property, plant, and equipment.... Total current assets (net)..... 124,800 55,200 $510,000 Current liabilities: $ 96,000 Accounts and short-term notes payable.... Accrued liabilities... 204,000 Total current liabilities 300,000 Working capital ... $210,000 Current ratio . Quick ratio..... 2. 1.7 $510,000 + $300,000 3. 1.2 $115,200 - $ 96,000
1. Current assets: Cash..... $102,000 Temporary investments .... 48,000 Accounts and notes receivable (net).. 120,000 Inventories..... 36,000 Prepaid expenses.. 24,000 Intangible assets Property, plant, and equipment.... Total current assets (net)..... 124,800 55,200 $510,000 Current liabilities: $ 96,000 Accounts and short-term notes payable.... Accrued liabilities... 204,000 Total current liabilities 300,000 Working capital ... $210,000 Current ratio . Quick ratio..... 2. 1.7 $510,000 + $300,000 3. 1.2 $115,200 - $ 96,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 13MCQ
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The bond indenture for the 10-year, 9% debenture bonds issued January 2, 20Y5, required
Please see the attachment for details:
a. List the errors in the determination of the three measures of current position analysis.
b. Is the company satisfying the terms of the bond indenture? Explain.
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