ACT 701 test.docx - The following data were abstracted from...

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ACT 701 test.docx

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The following data were abstracted from the 2014 December 31, balance sheet of Andrews Company: Cash $136,000 Short-term investments 64,000Accounts receivable 184,000Inventory 244,000Prepaid expenses 12,000Accounts Payable (all due within one year) 256,000Other short-term liabilities 64,000Bonds payable, long-term 400,000The current ratio is:Select one:a. 3:1. b. 1.2:1. c. 2:1. d. 1:2.
The following data were abstracted from the 2014 December 31, balance sheet of Andrews Company: Cash $136,000 Short-term investments 64,000Accounts receivable 184,000Inventory 244,000Prepaid expenses 12,000Accounts Payable (all due within one year) 256,000Other short-term liabilities 64,000Bonds payable, long-term 400,000
The quick ratio is:
Benson Company shows the following data on its 2014 financial statements: Accounts receivable, January 1 $720,000; Accounts receivable, December 31 960,000; Merchandise inventory, January 1 900,000; Merchandise inventory, December 31 1,020,000; Gross sales 4,800,000; Sales returns and allowances 180,000; Net credit sales 4,620,000; Cost of goods sold 3,360,000;

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