Ans:
Computation of current ratio:
Current ratio = (Current assets/Current liabilities)
*Current assets = $191,000
Current liabilities = $57,000
Current ratio = ($191,000/$57,000)
Current ratio = 3.35 times
Therefore, From the given options, correct answer is 2nd Option.
*Working notes:
Calculation of current assets:
Current asset | Amount |
Cash | $53,000 |
Accounts receivables | $11,000 |
Short term investments | $27,000 |
Merchandise inventory | $100,000 |
Total of current assets | $191,000 |
Thank you,
Feel free to comment incase of further help.
Wonderland, Inc. has $53,000 in cash, $11,000 in Accounts Receivable; $27,000 in short- term investments, and...
2018 2017 Cash Short-term Investments Net Accounts Receivables Merchandise Inventory Total Assets 60,000 $ 53,000 30,000 0 146,000 132,000 277,000 252,000 495,000 535,000 265,000 202,000 44,000 56,000 170,000 178,000 48,000 44,000 Total Current Liabilities Long-term Note Payable Income from Operations Interest Expense Compute the following ratios for 2018 and 2017, and evaluate the company's ability to pay its current liabilities and total liabilities: a. Current ratio d. Debt ratio b. Cash ratio e. Debt to equity ratio c. Acid-test ratio
Kramer Industries has cash of $39,000; net Accounts Receivable of $45,000; short-term investments of $12,000 and inventory of S31,000. It also has $30,000 in current liabilities and S57,000 in long-term liabilities. What is the current ratio for Kramer Industries? ● 2.58 ● 4.23 ● 3.20 1.90
Bronco Electronics' current assets consist of cash, short-term investments, accounts receivable, and inventory. The following data were abstracted from a recent financial statement: Inventory Total assets Current ratio Acid-test ratio Debt to equity ratio $ 180,000 $1,580,000 3.0 2.40 1.5 Required: Compute the long-term liabilities for Bronco: Long-term liabilities
The financial statements of Weston Office Supply include the following items: 2017 2016 Cash Short-term Investments Net Accounts Receivable Merchandise Inventory Total Assets Total Current Liabilities Long-term Note Payable $49,500 27,000 94,000 130,000 527,000 257,000 63,000 $50,000 11,000 98,000 127,000 545,000 232,000 54,000 What is 2017 current ratio? (Round your answer to two decimal places.) O A. 0.86 B. 0.57 O C. 1.17 OD. 1.65 Click to select your answer.
The balance sheet for Shrubs Landscaping, Inc. includes Cash $54,000 Short-term investments $154,000 Accounts Receivable $96,000 Inventory $360,000 Prepaid Insurance $42,000 Equipment $675,000 Accounts Payable $150,000 Unearned Revenue $100,000 Salaries Payable $15,000 Taxes Payable $5,000 Bonds Payable $750,000 Stockholder’s Equity $361,000 Calculate the acid-test (quick) ratio for Shrubs: (Round your answer to two decimal places.) 2.46 2.61 2.03 1.13
Cash Investments (short-term) Accounts receivable Inventory Notes receivable (long-term) Equipment Factory building Intangibles $20,000 Accounts payable 3,200 Accrued liabilities payable 3,600 Notes payable (current) 26,000 Notes payable (noncurrent) 2,600 Common stock 50,000 Additional paid-in capital 97,000 Retained earnings 4,400 $21,000 2,600 7,300 41,000 9,500 85,500 39,900 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $8,400 cash. b. Lent $5,700 to a supplier who signed a two-year note. c. Purchased equipment that cost...
Bronco Electronics' current assets consist of cash, short-term investments, accounts receivable, and inventory. The following data were abstracted from a recent financial statement: Inventory Total assets Current ratio Acid-test ratio Debt to equity ratio $ 185,000 $1,610,000 3.1 2.10 1.8 Required: Compute the long-term assets for Bronco: Long-term assets
The balance sheet for Shaver Corporation reported the following: cash, $11,000; short-term investments, $16,000; net accounts receivable, $47,000; inventories, $52,000; prepaids, $16,000; equipment, $121,000; current liabilities, $52,000; notes payable (long-term), $82,000; total stockholders’ equity, $129,000; net income, $4,520; interest expense, $6,800; income before income taxes, $8,880. Compute Shaver’s debt-to-assets ratio and times interest earned ratio. Debt to assets = Times interest earned =
CABOT CORPORATION Balance Sheet December 31, 2817 Assets Cash Short-term investments Accounts receivable, net Notes receivable (trade) Merchandise inventory Liabilities and Equity $12,e8 Accounts payable 28,888 Income taxes payable 38,15e Long-term note payable, secured by $15,58e 4,000 3,188 8, Accrued wages payable 5,580 65,488 mortgage on plant assets Prepaid expenses Plant assets, net Total assets 3,ee Common stock 154,3e8 Retained earnings 77,75e 249,758 Total liabilities and equity $ 249,75e These are short-term notes recelvable arising from customer (trade) sales. Requlrec...
Bronco Electronics' current assets consist of cash, short-term investments, accounts receivable, and inventory. The following data were abstracted from a recent financial statement: Inventory $ 170,000 Total assets $ 1,520,000 Current ratio 3.7 Acid-test ratio 2.45 Debt to equity ratio 1.5 Required: Compute the current assets for Bronco?