The company 's quick ratio is closest to
Eagle company has $9,000 in cash ,$11,000 in marketable securities ,$26,000 in current receivables,$34,000 in inventories and $40,000 in currrent liabilities.The company's quick ratio is closest to (a).1.35 (b)1.15 (c)2.00 (d)1.73
Homework Answers
Calculation of Company's Quick ratio
Quick ratio = Cash +Marketables securities + Current receivables / Current liabilities
=$9,000 + $11,000 + $26,000 / $40,000
=1.15
Option (b)1.15 is the correct choice
Calculating the Current Ratio and the Quick (or Acid-Test) Ratio LoLo Lemon Company has current assets...
Calculating the Current Ratio and the Quick (or Acid-Test) Ratio LoLo Lemon Company has current assets equal to $500,000. Of these, $300,000 is cash, $75,000 is accounts receivable, $125,000 is inventory, and the remainder is marketable securities. Current liabilities total $425,000. Required: Note: Round answers to two decimal places. 1. Calculate the current ratio. 2. Calculate the quick ratio (acid-test ratio).
The quick ratio a.relates cash, marketable securities, and net receivables to current liabilities. b.is calculated by...
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.
Short-Term Solvency Ratios (Liquidity Rations) 1. Calculate current ratio and quick/liquid/acid test ratio from the following:...
Short-Term Solvency Ratios (Liquidity Rations) 1. Calculate current ratio and quick/liquid/acid test ratio from the following: A Sundry debtors RO 400,000 Stock RO 160,000 A Marketable securities RO 80,000 Cash RO 120,000 * Prepaid expenses RO 40,000 Bill payables RO 80,000 Sundry creditors RO 160,000 A Debentures RO 200,000 Outstanding Expenses RO 160,000 2 Calculate current ratio and anikliidid tact rastin from the following Short-Term Solvency Ratios (Liquidity Rations) 1. Calculate current ratio and quick/liquid/acid test ratio from the following:...
12. Problem 7-12 (Comprehensive Ratio Calculations) eBook Comprehensive Ratio Calculations The Kretovich Company had a quick...
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Question Completion Status: QUESTION 1 Find the best match A. Acid test ratio or Quick ratio...
Question Completion Status: QUESTION 1 Find the best match A. Acid test ratio or Quick ratio - - Current Assets - current liabilities 7 Current assets divided by current liabilities B. Current Ratio (Current assets-prepaid expenses-merchandise inventory) divided by current liabilities C. Working capital D. Gross Margin Ratio QUESTION 2 James Company's current assets are Cash-$40,000, Accounts Receivable $5000, Inventory $3000, and prepaid expenses $2000. Their current liabilities are $10,000. Their long term liabilities were $20,000. What is the company's...
Data pertaining to the current position of Lucroy Industries Inc. follow: Cash $432,500 Marketable securities 185,000...
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...
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...
Stimac Corporation has total cash of $255,000, no marketable securities, total current receivables of $326,000, total...
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21. Based on the above data, what is the quick ratio, rounded to one decimal point?...
21. Based on the above data, what is the quick ratio, rounded to one decimal point? a. 2.4 b. 3.4 c. 2.1 d. 1.5 Accounts payable $ 30,000 Accounts receivable 65,000 Accrued liabilities 7,000 Cash 20,000 Intangible assets 40,000 Inventory 72,000 Long-term investments 100,000 Long-term liabilities 75,000 Marketable securities 36,000 Notes payable (short-term) 20,000 Property, plant, and equipment 625,000 Prepaid expenses 2,000
Long-term debt ratio Times interest earned Current ratio Quick ratio Cash ratio Inventory turnover Average collection...
Long-term debt ratio Times interest earned Current ratio Quick ratio Cash ratio Inventory turnover Average collection period 0.6 5.0 73 days Use the above information from the tables to work out the following missing entries, and then calculate the company's return on equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values. (Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.) INCOME STATEMENT (Figures in $ millions) Net sales...
Short-Term Solvency Ratios (Liquidity Rations) 1. Calculate current ratio and quick/liquid/acid test ratio from the following: A Sundry debtors RO 400,000 Stock RO 160,000 A Marketable securities RO 80,000 Cash RO 120,000 * Prepaid expenses RO 40,000 Bill payables RO 80,000 Sundry creditors RO 160,000 A Debentures RO 200,000 Outstanding Expenses RO 160,000 2 Calculate current ratio and anikliidid tact rastin from the following Short-Term Solvency Ratios (Liquidity Rations) 1. Calculate current ratio and quick/liquid/acid test ratio from the following:...
12. Problem 7-12 (Comprehensive Ratio Calculations) eBook Comprehensive Ratio Calculations The Kretovich Company had a quick ratio of 1.2, a current ratio of 3.5, a days' sales outstanding of 36.5 days (based on a 365-day year), total current assets of $840,000, and cash and marketable securities of $115,000. What were Kretovich's annual sales? Do not round intermediate calculations. Round your answer to the nearest dollar.
Question Completion Status: QUESTION 1 Find the best match A. Acid test ratio or Quick ratio - - Current Assets - current liabilities 7 Current assets divided by current liabilities B. Current Ratio (Current assets-prepaid expenses-merchandise inventory) divided by current liabilities C. Working capital D. Gross Margin Ratio QUESTION 2 James Company's current assets are Cash-$40,000, Accounts Receivable $5000, Inventory $3000, and prepaid expenses $2000. Their current liabilities are $10,000. Their long term liabilities were $20,000. What is the company's...
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...
21. Based on the above data, what is the quick ratio, rounded to one decimal point? a. 2.4 b. 3.4 c. 2.1 d. 1.5 Accounts payable $ 30,000 Accounts receivable 65,000 Accrued liabilities 7,000 Cash 20,000 Intangible assets 40,000 Inventory 72,000 Long-term investments 100,000 Long-term liabilities 75,000 Marketable securities 36,000 Notes payable (short-term) 20,000 Property, plant, and equipment 625,000 Prepaid expenses 2,000
Long-term debt ratio Times interest earned Current ratio Quick ratio Cash ratio Inventory turnover Average collection period 0.6 5.0 73 days Use the above information from the tables to work out the following missing entries, and then calculate the company's return on equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values. (Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.) INCOME STATEMENT (Figures in $ millions) Net sales...
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