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The following amounts were reported on the December 31, 2019, balance sheet:

The following amounts were reported on the December 31, 2019, balance sheet: Cash Accounts receivable Common stock Wages paya

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Answer #1

Working Capital = current Assets - Current Liabilities

Current Assets = Cash +Accounts Receivables + Invenotry =30,000+82,500+69,660

= $182,160

Current Liabilites = accounts Payable +Wages Payables =18,750+22,650

= $41,400

  1. Working Capital = $ 182,160-41,400 = $140,760(Answer)
  2. Current Ratio =Current Asets /Current Laibilites =  182160/41400= 4.4(Answer)
  3. Acis test Ratio = (182160-69,660)/ 41,400 = 2.7 (Answer)
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