Question

# Calculate the current ratio and the quick ratio for the following partial financial statement for Tootsie...

Calculate the current ratio and the quick ratio for the following partial financial statement for Tootsie Roll. (Round your answers to the nearest hundredth.)

 Assets Liabilities Current assets: Current liabilities: Cash and cash equivalents (Note 1) \$ 4,144,190 Notes payable to banks \$ 752,221 Investments (Note 1) 32,453,769 Accounts payable 7,084,075 Accounts receivable, less allowances of \$740,000 and \$736,000 16,126,648 Dividends payable 656,607 Inventories (Note 1): Accrued liabilities (Note 5) 9,906,534 Finished goods and work in progress 12,570,955 Income taxes payable 4,551,429 Raw materials and supplies 10,195,858 Prepaid expenses 1,957,710
 Current ratio Quick ratio

Current Asset= Total of Current Asset = 4,144,190+32,453,769+16,126,648+12,570,955+10,195,858+1,957,710=\$77,449,130

Current Liability= 752,221+7,084,075+656,607+9,906,534+4,551,429 = \$22,950,866

Quick Asset = Current Asset – Inventory- Prepaid Expens = 77,449,130-12,570,955-10,195,858-1,957,710 = \$52,724,607

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