What is the acid-test ratio for a merchant with the following account balances?

(Round your answer to two decimal places.)

Cash $22,000
Short-term investments 41,000
Net current receivables 50,000
Merchandise inventory 93,000
Total current liabilities 275,000

A) 0.75
B) 0.41
C) 0.60
D) 0.81


B .Acid-test ratio = ($22,000 + $41,000 + $50,000 ) / $275,000 = 0.41

Business

You might also like to view...

Ringer Corporation had a current ratio of 3.1 at the end of 2013 . Current assets and current liabilities increased by equal amounts during 2014 . The effects on net working capital and on the current ratio, respectively, were

a. no effect; increase. b. no effect; decrease. c. increase; increase. d. decrease; decrease.

Business

Firms often incur costs to maintain, repair, and improve their tangible assets. U.S. GAAP and IFRS require firms to treat expenditures for _____ as _____ as incurred but _____ treat as _____

a. maintenance and repairs; expenses of the period; expenditures for improvements; assets b. maintenance and repairs; assets; expenditures for improvements; expenses of the period c. maintenance and repairs; expenses of the period; expenditures for improvements; liabilities d. maintenance and repairs; liabilities; expenditures for improvements; expenses of the period e. maintenance and repairs; assets; expenditures for improvements; liabilities

Business

Anticipating whether the receiver's response to message may be neutral, positive, or negative can help in determining your organizational strategy

Indicate whether the statement is true or false

Business

What are the four elements defining each stage in a dynamic programming problem?

What will be an ideal response?

Business