CFIN (with Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
5th Edition
ISBN: 9781305661653
Author: Scott Besley, Eugene Brigham
Publisher: Cengage Learning
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Chapter 2, Problem 7PROB
Summary Introduction
To determine: Current Liabilities and Inventory
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Credit Card of America (CCA) has a current ratio of 3.5 and a quick ratio of 3.0. If its total current assets equal $73,500, what are CCA’s
(a)current liabilities and
(b)inventory?
Given the following information, compute the current and quick ratios:
Category
Amount
Current Ratio
Quick Ratio
Cash
$100,000
Accounts receivable
$357,000
Inventory
$458,000
Current Liabilities
$498,000
Long term debt
$610,000
Equity
$598,000
Given the following information, compute the current and quick ratios:
Cash
$
120,000
Accounts receivable
389,000
Inventory
495,000
Current liabilities
477,000
Long-term debt
611,000
Equity
567,000
Round your answers to two decimal places.
Current ratio: :1
Quick ratio: :1
Chapter 2 Solutions
CFIN (with Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
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