The difference between current and quick ratio concerns inventory |
Current assets = Quick Assets + Inventory + Prepaid expenses if any |
QUESTION 5 The difference between the current and quick ratios concerns o inventory cash marketable securities...
The quick ratio a.relates cash, marketable securities, and net receivables to current liabilities. b.is calculated by taking one item from the income statement and one item from the balance sheet. c.is the same as the current ratio except it is rounded to the nearest whole percent. d.is used to quickly determine a company's leverage and long-term debt-paying ability.
Stimac Corporation has total cash of $255,000, no marketable securities, total current receivables of $326,000, total inventory of $169,000, total prepaid expenses of $62,000, total current assets of $812,000, total current liabilities of $288,000, total stockholders’ equity of $1,914,000, total assets of $2,765,000, and total liabilities of $851,000. The company’s acid-test (quick) ratio is closest to:
Data pertaining to the current position of Lucroy Industries Inc. follow: Cash $432,500 Marketable securities 185,000 Accounts and notes receivable (net) 325,000 Inventories 700,000 Prepaid expenses 46,000 Accounts payable 230,000 Notes payable (short-term) 245,000 Accrued expenses 310,000 Required: 1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios to one decimal place. a. Working capital b. Current ratio C. Quick ratio 2. Compute the working capital, the current ratio, and the quick ratio...
Data pertaining to the current position of Lucroy Industries Inc. follow: Cash $432,500 Marketable securities 185,000 Accounts and notes receivable (net) 325,000 Inventories 700,000 Prepaid expenses 46,000 Accounts payable 230,000 Notes payable (short-term) 245,000 Accrued expenses 310,000 1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios to one decimal place. a. Working capital $ 903,500 b. Current ratio 2.15 x C. Quick ratio 1.20 ✓ 2. Compute the working capital, the current...
Data pertaining to the current position of Forte Company follow: Cash $412,500 Marketable securities 187,500 Accounts and notes receivable (net) 300,000 Inventories 700,000 Prepaid expenses 50,000 Accounts payable 200,000 Notes payable (short-term) 250,000 Accrued expenses 300,000 Required: 1. Compute (A) the working capital, (B) the current ratio, and (C) the quick ratio. Round ratios to one decimal place. 2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results...
Data pertaining to the current position of Forte Company follow: Cash $430,000 Marketable securities 160,000 Accounts and notes receivable (net) 330,000 Inventories 700,000 Prepaid expenses 50,000 Accounts payable 240,000 Notes payable (short-term) 245,000 Accrued expenses 285,000 Required: 1. Compute (A) the working capital, (B) the current ratio, and (C) the quick ratio. Round ratios to one decimal place. 2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results...
Data pertaining to the current position of Forte Company follow: Cash $447,500 Marketable securities 180,000 Accounts and notes receivable (net) 325,000 Inventories 700,000 Prepaid expenses 46,000 Accounts payable 210,000 Notes payable (short-term) 240,000 Accrued expenses 300,000 Required: Compute (A) the working capital, (B) the current ratio, and (C) the quick ratio. Round ratios to one decimal place. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results in the...
Current Year Previous Year Current assets: Cash $387,600 $291,200 Marketable securities 448,800 327,600 Accounts and notes receivable (net) 183,600 109,200 Inventories 475,200 348,900 Prepaid expenses 244,800 223,100 Total current assets $1,740,000 $1,300,000 Current liabilities: Accounts and notes payable (short-term) $348,000 $364,000 Accrued liabilities 252,000 156,000 Total current liabilities $600,000 $520,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
The following items are reported on a company's balance sheet: Cash $335,900 Marketable securities 262,400 Accounts receivable (net) 320,100 Inventory 131,200 Accounts payable 328,000 Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place. a. Current ratio b. Quick ratio
Amounts in millions Balance Sheet Cash and Cash Equivalents $2,200 Marketable Securities 15,300 Accounts Receivable (net) 10,000 Total Current Assets 42,000 Total Assets 155.000 Current Liabilities 28,000 Long-Term Debt 47,500 Shareholders' Equity 79,500 Income Statement Interest Expense 3.200 Net Income Before Taxes 36,800 Calculate the following ratios: (Round to 2 decimal points) a. Times-interest-earned ratio 0 b. Quick ratio C. Current ratio