Do you add Plant and Equipment when calculating current assets in the current ratio formula?
Do you add Plant and Equipment when calculating current assets in the current ratio formula?
Homework Answers
No Plants and Equipment are not included in current assets as
their life is more than 1 years generally.
Hence, the current assets does not include plant and equipment used
in current ratio formula.
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Do you add Plant and Equipment when calculating current assets
in the current ratio formula?
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QUESTION 2 When calculating confidence intervals, how do you determine which formula to use?
The assets of Stewart company consist entirely of current assets and net plant and equipment. The firm has total assets of $3.6 million and net plant and equipment equals $1.2 million. It has notes payable of $570,000, long-term debt of $1.15 million, and total common equity of $1.25 million. The firm does have accounts payable and accruals on its balance sheet. The firm only finances with debt and common equity, so it has no preferred stock on its balance sheet....
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A Current assets B. Investments C. Property, plant, and equipment D. Intangible assets E. Current liabilities F. Long-term liabilities G. Stockholders' equity H. Not on the balance sheet 1. Accumulated depreciation-equipment 2. Common stock 3. Interest expense 4. Salaries and wages payable m 5. Retained earnings 6. Inventory 7. Patents 8. Prepaid insurance 9. Mortgage payable 10. Land (held for investment)
The assets of Dallas & Associates consist entirely of current assets and net plant and equipment, and the firm has no excess cash. The firm has total assets of $3 million and net plant and equipment equals $2.6 million. It has notes payable of $145,000, long-term debt of $754,000, and total common equity of $1.5 million. The firm does have accounts payable and accruals on its balance sheet. The firm only finances with debt and common equity, so it has...
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