Question
Working Capital and Short Term Liquidity Ratios Bell Company has a current ratio of 2.85 (2.85:1)...
Working Capital and Short Term Liquidity Ratios
Bell Company has a current ratio of 2.85 (2.85:1) on December 31.
On that date the company's current assets are as follows:
| Cash | $30,400 |
| Short-term investments | 49,000 |
| Accounts receivable (net) | 171,000 |
| Inventory | 200,000 |
| Prepaid expenses | 11,600 |
| Current assets | $462,000 |
Bell Company's current liabilities at the beginning of the year
were $138,000 and during the year its operating activities provided
a cash flow of $50,000.
a. What are the firm's current liabilities on December 31?
Round answer to the nearest whole number.
Answer
b. What is the firm's working capital on December 31?
Round answer to the nearest whole number.
Answer
c. What is the quick ratio on December 31?
Round answer to 2 decimal places.
Answer
d. What is the Bell's operating-cash-flow-to-current-liabilities
ratio?
Round answer to 2 decimal places.
Answer
Homework Answers
Answer #1
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