Extracts from the balance sheet ( 000,000 ) of A Co. as follows: Current Assets Merchandise Inventory P 77.1 Accounts Receivable 50.1 Cash on Hand and in 85.0 Creditors: Amounts falling due within one year 70.2 Bank Overdraft Other Creditors 147.0 What is the current ratio and the acid test ratio of the co.? Current ratio Acid test ratio a. .96 .38 b. .96 .36 c. .98 .61 d. .98 .62
Extracts from the balance sheet ( 000,000 ) of A Co. as follows: Current Assets Merchandise Inventory P 77.1 Accounts Receivable 50.1 Cash on Hand and in 85.0 Creditors: Amounts falling due within one year 70.2 Bank Overdraft Other Creditors 147.0 What is the current ratio and the acid test ratio of the co.? Current ratio Acid test ratio a. .96 .38 b. .96 .36 c. .98 .61 d. .98 .62
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business
Section: Chapter Questions
Problem 9SPB: FINANCIAL RATIOS Use the work sheet and financial statements prepared in Problem 15-8B. All sales...
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Extracts from the balance sheet ( 000,000 ) of A Co. as follows:
Current Assets
Merchandise Inventory P 77.1
Accounts Receivable 50.1
Cash on Hand and in 85.0
Creditors: Amounts falling due
within one year 70.2
Bank Overdraft
Other Creditors 147.0
What is the
Current ratio Acid test ratio
a. .96 .38
b. .96 .36
c. .98 .61
d. .98 .62
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