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AsEdison Cash $4,000 Stagg Cash $2,500 ThorntonCash $1,000 QuestionsEdison Current ratio4.67Quick ratio3.33Stagg Current ratio4.67Quick ratio3.06ThorntonCurrent ratio4.67Quick ratio2.78LISTEN TO AUDIO/VIDEO EXPLAINING THE GUIDAAccount tobe changedOriginalAmountCh 9 Ex 3YOUR ANSWERS BASED UPON COURSE START DATECompute the current and quick ratios for each of the three companies. (Round calculations to two decimal places.) Which firm is the most liquid? Why?
20X5 20X4Net Credit Sales $832,000 $760,000 Cost of Goods Sold 440,000350,000QuestionsSuppose Thornton is using FIFO for inventory valuation and Edison is using LIFO. Comment on the comparability of information between these two companies.If all short-term notes payable are due on July 11 at 8 a.m., comment on each company's ability to settle its obligation in a timely manner.Edison, Stagg and Thorton all have sufficient cash to meet the obligation.Account tobe changedOriginalAmountCh 9 Ex 4YOUR ANSWERS BASED UPON COURSE START DATEThe company is planning to borrow $300,000 via a 90-day bank loan to cover short-term operating needs.a. Compute the accounts-receivable and inventory-turnover ratios for 20X5