Given the following fact pattern, compute the current ratio: Long-term debt 50,000 Cash 20,000 Accounts Payable...
Given the following fact pattern, compute the current ratio: Long-term debt 50,000 Cash 20,000 Accounts Payable 30,000 Marketable securities 30,000 Inventory 10,000 Taxes 15,000 Land 100,000 Accounts Receivable 30,000
Homework Answers
Current Ratio = Current assets / Current liabilities
Current Assets = Cash 20,000 + Marketable securities 30,000 + Inventory 10,000 + Accounts Receivable 30,000
Current Liabilities = Accounts Payable 30,000 + Taxes 15,000
= 90,000 / 45,000
= 2
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Given the following fact pattern, compute the current ratio:
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