Question

Jessica's Boutique has cash of $40, accounts receivable of $66, accounts payable of $180, and inventory...

Jessica's Boutique has cash of $40, accounts receivable of $66, accounts payable of $180, and inventory of $150. What is the value of the quick ratio?

.37

2.01

1.42

.83

.59

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Solution:- Given in Question-

Cash = $40,

Accounts Receivable = $66

Accounts Payable (Current Liabilities) = $180

Inventory = $150

Current Assets = Inventory + Cash + Accounts Receivable

Current Assets = $150 + $40 + $66

Current Assets = $256.

To Find Quick Ratio-

Quick Ratio =

Quick Ratio =

Quick Ratio =

Quick Ratio = 0.59

In Quick Ratio, can not consider Inventory Amount in Current Assets.

If you have any query related to question then feel free to ask me in a comment. Thanks. Please rate.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A firm has accounts receivable of $26,000, inventory of $38,000, and accounts payable of $21,000. If...
A firm has accounts receivable of $26,000, inventory of $38,000, and accounts payable of $21,000. If a new project is accepted, the estimated values are projected to be accounts receivable of $31,000, inventory of $29,000, and accounts payable of $24,000. What is the project's initial net working capital cash flow? Possible Answers: outflow of $4,000, outflow of $1,000, inflow of $3,000, inflow of $7,000
Calculate the accounts receivable period, accounts payable period, inventory period, and cash conversion cycle for the...
Calculate the accounts receivable period, accounts payable period, inventory period, and cash conversion cycle for the following firm: Income statement data: Sales 5,000 Cost of goods sold 4,200 Balance sheet data: Inventory 550 Accounts receivable 110 Accounts payable 270
A company's trial balance included the following account balances: Accounts payable $19,257 Accounts receivable 81,386 Cash...
A company's trial balance included the following account balances: Accounts payable $19,257 Accounts receivable 81,386 Cash 73,374 Income tax payable 3,562 Inventories 25,866 Note payable, due in two years 1,759 Equipment 54,628 Stockholders' equity 203,308 Supplies 5,562 Wages payable 12,930 What is the amount of the current ratio (round to two decimal places)? 5.21, 1.00, 4.99 or 2.01
Explain/discuss of the tradeoff theories for current accounts (e.g., cash, inventory, accounts receivable, accounts payable)
Explain/discuss of the tradeoff theories for current accounts (e.g., cash, inventory, accounts receivable, accounts payable)
Liquidity Ratios XYZ's financial statements contain the following information: Cash $311,900 Accounts receivable 669,900 Inventory 823,900...
Liquidity Ratios XYZ's financial statements contain the following information: Cash $311,900 Accounts receivable 669,900 Inventory 823,900 Marketable securities 103,900 Accounts payable 593,000 Accrued expenses 177,000 Long-term debt 1,010,000 Round answers to two decimal places. Required: 1. What is its current ratio? 2. What is its quick ratio? 3. What is its cash ratio? 4. Using the ratios computed above, answer the following regarding NWA's liquidity. NWA’s current ratio depends on how liquid NWA's _______ are. If the ________ is slow...
Cash Conversion Cycle. Calculate the (a) accounts receivable period, (b) accounts payable period, (c) inventory period,...
Cash Conversion Cycle. Calculate the (a) accounts receivable period, (b) accounts payable period, (c) inventory period, and (d) cash conversion cycle for the following firm: Income Statement Data:             Sales                            5,000             Cost of goods sold      4,200             Balance sheet data: Beginning of Year End of Year Inventory 500 600 Accounts receivable 100 120 Accounts payable 250 290 Calculate the accounts receivable period: Response (show formula and numerical values): Calculate the accounts payable period Response (show formula and numerical values):...
A firm currently has $30M of cash, $20M of accounts receivable, $45M of inventory and $10M...
A firm currently has $30M of cash, $20M of accounts receivable, $45M of inventory and $10M in taxes payable. The firm plans to finance some of its inventory next year with trade credit. As a result, cash needs will decrease to $10M, accounts payable will be $40M and inventory will increase to in $60M. Then, the year after that, the firm plans to use just-in-time inventory management rather than trade credit to reduce its cost of stocking inventory, which would...
A company has inventory balance of $26,169, accounts receivable of $10,432, and accounts payable of $15,226....
A company has inventory balance of $26,169, accounts receivable of $10,432, and accounts payable of $15,226. If the credit sales are $194,874 and cost of goods sold are $139,527, what is the company's cash (conversion) cycle in number of days? (Use ending balances and assume 365 days in a year.) Options: 36.84 37.84 38.84 39.83 40.83
A company has inventory balance of $22,467, accounts receivable of $8,842, and accounts payable of $13,504....
A company has inventory balance of $22,467, accounts receivable of $8,842, and accounts payable of $13,504. If the credit sales are $171,186 and cost of goods sold are $118,377, what is the company's cash (conversion) cycle in number of days? (Use ending balances and assume 365 days in a year.) a) 41.64 b)40.60 c) 44.76 d) 42.68 e)43.72
A company has the opening balance for the following accounts: Cash $100, Accounts Receivable $0, Inventory...
A company has the opening balance for the following accounts: Cash $100, Accounts Receivable $0, Inventory $600, Liabilities $0, Total Equity $700. The firm sells all inventory on credit for $800 and securitized the accounts receivable receiving $850 in cash from the SPE. Calculate the company’s Net Income, Return on Assets ratio and Debt to Assets ratio assuming 1) the transaction is recorded as a sale (10pts), and 2) the transaction is recorded as a secured borrowing
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT