Extracts from the balance sheet of Michigan, Inc are as follows
2017
Assets
Current Assets:
Cash and Cash Equivalents $30,000
Accounts Receivable, Net 65,000
Merchandise Inventory 50,000
Total Current Assets 145,000
Long-term Investments 150,000
Property, Plant, and Equipment, Net 250,000
Total Assets $545,000
Total Current Liabilities $150,000
Compute the acid-test ratio.
What will be an ideal response
Quick assets
Cash and Cash Equivalents $30,000
Accounts Receivable, Net 65,000
Total quick assets $95,000
Total Current Liabilities / $150,000
Quick ratio (Total quick assets / Total current liabilities) 0.63
You might also like to view...
Answer the following statement(s) true (T) or false (F)
16. The skill of creativity allows you to harness opportunities but not create opportunities. 17. The skill of creativity requires a high IQ. 18. The skill of creativity allows you to harness opportunities but not create opportunities. 19. Reflection can be considered an action. 20. Entrepreneurship is more of a method than a process.
NAFTA is a trade agreement between
A. the United States, Canada, and Mexico. B. the European Union and the United States. C. the United States, Mexico, and Brazil. D. the United States and China. E. Brazil, China, and India.
Which of the following is an action the Federal Trade Commission (FTC) can take to stop a company from continuing an unfair trade practice?
A. corrective advertising B. a private ruling C. a cease and desist order D. a consent degree E. a stay
Which of the following is the correct formula for measuring a cost variance?
A) Cost Variance = (Actual Cost + Standard Cost) / Actual Quantity B) Cost Variance = (Actual Cost - Standard Cost) x Actual Quantity C) Cost Variance = (Actual Cost + Standard Cost) + Actual Quantity D) Cost Variance = (Actual Cost - Standard Cost) - Actual Quantity