Question
Calculate the current ratios for the following:

a) current assets: $700,000; current liability: $350,000

b) current assets: $300,000; current liability:
$200,000

c) current assets: $500,000; current liability: $250,000
0 0
Add a comment Improve this question Transcribed image text
Answer #1

(a). Current ratio = 2 : 1

Explanation;

Current ratio = Current assets / Current liabilities

Current ratio = $700,000 / $350,000

= 2 : 1

(b). Current ratio = 1.50 : 1

Explanation;

Current ratio = Current assets / Current liabilities

Current ratio = $300,000 / $200,000

= 1.50 : 1

(c). Current ratio = 2 : 1

Explanation;

Current ratio = Current assets / Current liabilities

Current ratio = $500,000 / $250,000

= 2 : 1

Add a comment
Know the answer?
Add Answer to:
Calculate the current ratios for the following: a) current assets: $700,000; current liability: $350,000 b) current...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • acct hw help Ashley's Accessory Shop started the year with total assets of $350,000 and total...

    acct hw help Ashley's Accessory Shop started the year with total assets of $350,000 and total liabilities of $100,000. During the year the business recorded $250,000 in revenues, $80,000 in expenses, and dividends of $60,000. Stockholders' equity at the end of the year was $130,000 $250,000 $420,000 $360,000 QUESTION 21 A company began the year with retained earnings of $500,000. During the year, the company recorded revenues of $450,000, expenses of $300,000, and paid dividends of $200,000. What was the...

  • 4. Suppose the Robinson Company had a cost of goods sold of $1,000,000 in 2016 and...

    4. Suppose the Robinson Company had a cost of goods sold of $1,000,000 in 2016 and $1,200,000 in 2017. a. Calculate the inventory turnover for each year. Comment on your findings. b. What would have been the amount of inventories in 2017 if the 2016 turnover ratio had been maintained? Cash and marketable securities Accounts receivable 2017 $50,000 350,000 500,000 $900,000 $250,000 Inventories 2016 $50,000 300,000 350,000 $700,000 $200,000 0 150,000 $350,000 Total current assets Accounts payable Bank loan Accruals...

  • Knapsack problem. From the following list of potential projects, use Excel solver to find the opt...

    Knapsack problem. From the following list of potential projects, use Excel solver to find the optimal allocation of your budget of $1,000,000 to maximize profit. Select the projects that you will select and attach your answer report. Project ID Cost Expected profit Check selected 1 $400,000 $1,000,000 2 $50,000 $400,000 3 $300,000 $800,000 4 $150,000 $300,000 5 $400,000 $600,000 6 $600,000 $2,000,000 7 $200,000 $300,000 8 $250,000 $700,000 9 $100,000 $300,000 10 $100,000 $300,000 11 $250,000 $100,000 12 $350,000 $700,000...

  • Balance Sheets Liabilities R.A Ltd. A.R Ltd. Assets R.A Ltd. A.R Ltd. Share Capital £    600,000...

    Balance Sheets Liabilities R.A Ltd. A.R Ltd. Assets R.A Ltd. A.R Ltd. Share Capital £    600,000 £       800,000 Land and Building £    500,000 £    800,000 Reseve and Surplus £    150,000 £       350,000 Plant and Machinery £    300,000 £    700,000 14% Debentures £    400,000 £    1,000,000 Furniture £    200,000 £    400,000 Mortgaged Loan £    100,000 £       500,000 Office Equipments £    110,000 £    230,000 Sundry Creditors £    200,000 £       300,000 Stock £    300,000 £    500,000 Bills Payable £    100,000 £       250,000 Sundry...

  • Using the following to determine the debt-to-equity ratio. Common Stock $300,000 Current Assets $100,000 Current Liabilities...

    Using the following to determine the debt-to-equity ratio. Common Stock $300,000 Current Assets $100,000 Current Liabilities $50,000 Intangible Assets $120,000 Investments $200,000 Long-term Liabilities $250,000 Other Assets $80,000 Property, Plant & Equipment $300,000 Retained Earnings $200,000 A. 0.62 B. 0.77 C. None of these D. 0.60

  • Calculate the current ratio, quick ratio, long-term debt/total assets, times interest earned, and fixed cost coverage...

    Calculate the current ratio, quick ratio, long-term debt/total assets, times interest earned, and fixed cost coverage using the picture below. X2 X3 X4 $2,500,000 3.200,000 3,500,000 4,000,000 1.900.000 2400.0002.700.000 3200.000 800,000 400,00D 25,000 200,000 10.000 20.000 30.000 60.000 15,000 107,500 COST OF GOODS SOLD GROSS PROFIT SELLING & ADMINISTRATIVE EXPENSE DEPRECIATION LEASES MISCELLANEOUS EXPENSE 600,000 400,000 800,000 800,000 400,000 160,000 190,000 138,700 25,000 175,000 170,000 89,000 EARNINGS BEFORE INTEREST & TAXES INTEREST EARNINGS BEFORE TAXES TAXES (35%) NET INCOME DIVIDENDS...

  • On January 1, 2020, Wasp Corporation purchased the net assets of Mud Dauber Company for $1,475,000...

    On January 1, 2020, Wasp Corporation purchased the net assets of Mud Dauber Company for $1,475,000 cash. On this date, a condensed balance sheet for Mud Dauber showed: ​ ​ Book Fair ​ Value Value Current Assets $ 500,000 $750,000 Long-Term Investments in Securities 200,000 175,000 Land 100,000 500,000 Buildings (net) 700,000 975,000 ​ $1,500,000 ​ ​ ​ ​ Current Liabilities $ 300,000 $300,000 Long-Term Debt 550,000 525,000 Common Stock (no-par) 300,000 ​ Retained Earnings 350,000 ​ ​ $1,500,000 ​...

  • A. Required: 1. Please calculate the following ratios and amounts: a) working capital, b) current ratio,...

    A. Required: 1. Please calculate the following ratios and amounts: a) working capital, b) current ratio, c) acid-test ratio, d) cash to current liabilities ratio, e) days’ sales in receivables (based on ending accounts receivables), f) days’ sales in inventory (based on cost of goods and ending inventory), g) operating cycle, h) total debt to equity ratio and i) times interest earned. For your calculations, assume that a year amounts for 360 days The balance sheet and the income statement...

  • , has $800,000 in current assets, $350,000 of which are considered permanent current assets

    Lear, Inc., has $800,000 in current assets, $350,000 of which are considered permanentcurrent assets. In addition, the firm has $600,000 invested in fixed assets.a. Lear wishes to finance all fixed assets and half of its permanent currentassets with long-term financing costing 10 percent. Short-term financingcurrently costs 5 percent. Lear’s earnings before interest and taxes are$200,000. Determine Lear’s earnings after taxes under this financing plan.The tax rate is 30 percent.b. As an alternative, Lear might wish to finance all fixed assets...

  • Calculate the difference between the value implied by the purchase price and book value in each of the separate cases below

    [Ⅱ] Calculate the difference between the value implied by the purchase price and book value in each of the separate cases below Case Percent of Stock Owned Investment Cost S Company Equity Balances Common Stock Other Contributed Capital Retained Earnings a. 100% $1,200,000 $600,000 $350,000 $200,000 b. 85% 850,000 500,000 200,000 100,000 c. 90% 1,000,000 750,000 300,000 (250,000) d. 60% 600,000 350,000 -0- 300,000

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT