Question

stTes Exercise #4 : Análins de los Estados Fin oras (10 PUNTOS **Presente todos sus caleulos para llegar al reanltzdo CADA UNO) Accounts payable Accounts receivable Accrued liabilities Cash Intangible assets Irventory Long-term investments Long-term liabilities Marketable securities Notes payable (short-term) Property, plant, and equipmient Prepaid expenses 3 40,000 65,000 7,000 30,000 40,000 72,000 110,000 75,000 36,000 30,000 625,000 2,000 1. Based on the above data, what is the amount of quick assets? 2 $205,000 b. $203,000 c. 3131,000 d. 366,000 2. Based on the above data, what is the amount of working capital? 2. $238,000 b. 3128,000 c $168,000 d. 3203,000 3. Based on the above data, what is the quick ratio, rounded to one decimal point? 2. 2.1 b, 2.6 c. 1.1 d. 0.9

Answer 1

QUICK ASSETS: quick assets are those whick are transform into cash with in one year are already in cash form

Example: cash,marketable securities, accounts receivables.

1) computation of quick assets amount

Particulars Amount( in $ )

Accounts receivable 65000

Cash 30000

Marketable securities 36000

______________

Quick assets $ 131000

________________

Option- C is correct

2) computation of working capital

____________________________________

Working capital = Current assets - current liabilities

Current assets amount(in $ )

________________ _______________

Accounts receivable 65000

Cash 30000

Marketable securities 36000

Inventory 72000

Prepaid expenses 2000

_________________

Total Current assets $ 205000

__________________

Current liabilities. Amount (in $)

_________________. ______________

Accounts payable 40000

Accrued liabilities 7000

Notes payable 30000

________________

Total current liabilities $77000

_________________   

Working capital = current assets - current liabilities

= $205000 - $77000

= $128000

Option - B is CORRECT

3) computation of quick ratio

_______________________________

Quick ratio = current assets - inventory/current liabilities

( Or)

Accounts receivable+ cash+marketable securities

__________________________________________________

Current liabilities

Quick ratio = $65000 +$ 30000 +$ 36000

____________________________

$77000

= 1.7012 times

= 1.7 times ( approx)

OPTION- C is CORRECT