Question

22. Kingsbury Associate’s current assets are as follows Cash 3,000 Accounts Receivable 4,000 Inventories 8,000 If...

22. Kingsbury Associate’s current assets are as follows

Cash 3,000
Accounts Receivable 4,000
Inventories 8,000
If Kingsbury has a current ratio of 3.2, what is its quick ratio? [Hint: Quick Ratio = (Current Assets-Inventory)/Current Liabilities]

  1. 2.07

  2. 1.49

  3. 0.48

  4. None of the above

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Current ratio= Current assets/ Current liabilities

3.2= $4,000 + $8,000 + $3,000/ Current liabilities

3.2= $15,000 / Current liabilities

Current liabilities= 3.2* $15,000= $48,000.

Quick ratio= Current assets- inventory/ Current liabilities

                     = $15,000- $8,000/ $48,000

                     = $7,000/ $48,000 = 0.1458.

Therefore, the answer is option d, none of the above

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
Spartan Sportswear's current assets consist of cash, marketable securities, accounts receivable, and inventories. The following data...
Spartan Sportswear's current assets consist of cash, marketable securities, accounts receivable, and inventories. The following data were abstracted from a recent financial statement: Inventories $ 180,000 Total assets $ 840,000 Current ratio 3.50 Acid-test ratio 2.00 Debt to equity ratio 1.80 Required: Compute the long-term liabilities for Spartan:
Bronco Electronics' current assets consist of cash, marketable securities, accounts receivable, and inventories. The following data...
Bronco Electronics' current assets consist of cash, marketable securities, accounts receivable, and inventories. The following data were abstracted from a recent financial statement: Inventories $ 170,000 Total assets $ 1,850,000 Current ratio 4.2 Acid-test ratio 3.20 Debt to equity ratio 1.5 Required: Compute the long-term liabilities for Bronco:
XYZ Corp. has current assets of $8 million, current liabilities of $2 million, cash of $4...
XYZ Corp. has current assets of $8 million, current liabilities of $2 million, cash of $4 million, accounts receivable of $3 million, and inventory of $1 million. XYZ has decided to use $2 million of its cash to buy additional inventory. Which of the following ratios will change as a result of this move? Total Asst Turnover All of the above Current Ratio Quick Ratio
Balance Sheet Current assets Cash 1,100,000 Acc receivable not given Inventories 1,390,000 Fixed assets 4,160,000 TOTAL...
Balance Sheet Current assets Cash 1,100,000 Acc receivable not given Inventories 1,390,000 Fixed assets 4,160,000 TOTAL ASSETS 7,300,000 Current liabilities Acc payable not given Long-term debt 2,200,000 Common stock 800,000 Retained earnings 3,100,000 TOTAL LIAB and EQUITY 7,300,000 Income Statement Sales 14,600,000 Operating expense 12,410,000 EBIT 2,190,000 Interest expense 242,000 EBT 1,948,000 Taxes 779,000 Net income 1,169,000 What is the firm's quick ratio? What is the firm's quick ratio? A.0.92 B.2.62 C.2.08 D.0.51 E.1.46
Balance Sheet Current assets Cash 1,010,000 Acc receivable not given Inventories 1,150,000 Fixed assets 4,100,000 TOTAL...
Balance Sheet Current assets Cash 1,010,000 Acc receivable not given Inventories 1,150,000 Fixed assets 4,100,000 TOTAL ASSETS 7,200,000 Current liabilities Acc payable not given Long-term debt 2,900,000 Common stock 1,010,000 Retained earnings 2,830,000 TOTAL LIAB and EQUITY 7,200,000 Income Statement Sales 21,600,000 Operating expense 18,140,000 EBIT 3,460,000 Interest expense 348,000 EBT 3,112,000 Taxes 1,245,000 Net income 1,867,000 What is the firm's quick ratio? 0.58 6.74 4.70 4.24 0.92
Accounts payable.......................................................... $ 52,000 Accounts receivable...................................................... 84,500 Cash............................................................................... 147,20
Accounts payable.......................................................... $ 52,000 Accounts receivable...................................................... 84,500 Cash............................................................................... 147,200 Market price/share....................................................... 65.00 Net sales........................................................................ 590,000 Other current liabilities................................................. 22,500 Net income.................................................................... 174,000 Salaries payable ............................................................ 19,600 Shareholders’ equity..................................................... 310,900 Total assets................................................................... 500,000 Weighted average number of common shares............ 4,000 Instructions Calculate the following ratios: (Hint: Remember: Total Assets = Total Liabilities + Shareholder’s equity). (a) Current ratio (b) Profit Margin (c) Basic earnings per share (d) Debt to total assets
Given the following Financial Information Answer the following question: 2017 2018 Cash 7,000 218,462 Accounts Receivable...
Given the following Financial Information Answer the following question: 2017 2018 Cash 7,000 218,462 Accounts Receivable 8,000 8,800 Inventory 4,000 4,400 Prepaid Assets 3,000 3,300 Other Assets 1,000 1,100 Total Current Assets 23,000 236,062 Net PPE 80,000 14,000 Intangibles 4,000 4,000 Total Assets 107,000 254,062 Accounts Payable 8,000 8,800 Salary Payable 1,000 1,100 Notes Payable 3,000 3,000 Total Current Liabilities 12,000 12,900 Long-Term Debt 50,000 50,000 Total Liabilities 62,000 62,900 Common Stock 70,000 70,000 Retained Earnings -25,000 121,162 total equity...
Suppose a company starts with $8,000 in current assets and $4,000 in current liabilities. The company...
Suppose a company starts with $8,000 in current assets and $4,000 in current liabilities. The company then refinances $400 of long-term debt with short term debt. After the refinancing, what is the company's current ratio? Round your answer to 2 decimal places, for example 1.12.
The Jamesway Printing Corporation has current assets of $3.5 million. Of this total, $1.2 million is...
The Jamesway Printing Corporation has current assets of $3.5 million. Of this total, $1.2 million is inventory, $0.6 million is cash, $1.0 million is accounts receivable, and the balance is marketable securities. Jamesway has $1.6 million in current liabilities. Round your answers to two decimal places. What are the current and the quick ratios for Jamesway? Current ratio:  x Quick ratio:  x If Jamesway takes $0.2 million in cash and pays off $0.2 million of current liabilities, what happens to its current...
The balance sheet and income statement for the A. Thiel Mfg. Company are as follows: Balance...
The balance sheet and income statement for the A. Thiel Mfg. Company are as follows: Balance Sheet ($000) Cash $ 500 Accounts receivable 2,000 Inventories 1,000 Current assets $3,500 Net fixed assets 4,500 Total assets $8,000 Accounts payable $1,100 Accrued expenses 600 Short-term notes payable 300 Current liabilities $2,000 Long-term debt 2,000 Owners’ equity 4,000 Total liabilities and owners’ equity $8,000 Income Statement ($000) Sales (all credit) $8,000 Cost of goods sold (3,300) Gross profit $4,700 Operating expenses (includes $500...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT