Survey of Accounting (Accounting I)

8th Edition
Carl Warren
ISBN: 9781305961883



Survey of Accounting (Accounting I)

8th Edition
Carl Warren
ISBN: 9781305961883
Textbook Problem

Twenty metrics of liquidity, solvency, and profitability

The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8


Quick ratio

To determine

Concept Introduction:

Acid test ratio:

Acid test ratio is also called Quick ratio. This ratio is calculated by dividing the quick assets (Cash, Cash equivalents, Short term investments and current receivables) by total current liabilities for the year. The formula for Acid test ratio is as follows:

  Acid test ratio = (Cash + Cash equivalents + Short term investments + Accounts receivables) Current Liabilities

To Calculate:

The Quick Ratio.


The Quick Ratio is calculated as follows:

    20Y8 20Y7
    Total Current Assets $ 3,690,000 $ 3,089,000
    Less: Inventories $ (1,190,000) $ (950,000)

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

What does the invisible hand of the marketplace do?

Essentials of Economics (MindTap Course List)

To put XOMs P/E ratio in perspective, it is useful to see how this ratio has varied over time. (If you go to Mo...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

How do unions affect the natural rate of unemployment?

Principles of Macroeconomics (MindTap Course List)

If the euro depredates against the U.S. dollar, can a dollar bay more or fewer euros as a result? Explain.

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

The word persuasion turns some people off. What negative connotations can it have?

Essentials of Business Communication (MindTap Course List)

What is the major goal of integrated marketing communications?

Foundations of Business (MindTap Course List)

How often must an employer file Form 941?