A)The following items are reported on a company’s balance sheet:
Cash $400,000 Marketable securities 50,000
Accounts receivable 150,000
Accounts payable 250,000
Determine the (a) current ratio, and (b) quick ratio. Round your answers to one decimal place.
a. Current ratio:
b. Quick ratio :
B) A company reports the following:
Income before income tax: $341,880
Interest expense: 77,700
Determine the number of times interest charges are earned. Round your answer to one decimal place.
C) A company reports the following:
Average accounts receivable (net): 50,000
Determine the (a) accounts receivable turnover, and (b) number of days' sales in receivables. When required, round your answers to one decimal place. Assume a 365-day year.
a. Accounts receivable turnover:
b. Number of days' sales in receivables:
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