8 the quick ratio is the liquidity ratio divided by

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8. The quick ratio is: The liquidity ratio divided by the equity ratio. Current assets minus inventory divided by current liabilities minus accounts payable.
Current assets minus inventory and prepaid items divided by current liabilities. Cash divided by accounts payable. The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below. Current assets: Current liabilities: Cash $ 60 Accounts payable $240 Accounts receivable (net) 170 Other liabilities Notes receivable 50 Total current liabilities Inventories 200 Long-term liabilities Prepaid expenses 25 Total liabilities Total current assets 505 Shareholders' equity: Plant assets (net) 255 Capital stock Retained earnings 180 Total shareholders' equity 330 Total assets $760 Total liabilities and equity $760 9. Working capital is: 80 320 110 430 150
10. Quick assets total:
11. The following is a December 31, 2013, post-closing trial balance for Almway Corporation. Account Title Debits Credits Cash 55,000 Investm ents 120,000 Account s receivabl e 65,000 Inventor ies 205,000 Prepaid insuranc e 7,000
Land 100,000 Building s 425,000 Accumu lated depreciat ion— buildings 105,000 Equipm ent 115,000 Accumu lated depreciat ion— equipme nt 65,000 Patents (net of amortizat ion) 15,000 Account s payable 85,000 Notes payable 145,000 Interest payable 25,000 Bonds payable 245,000 Commo n stock 315,000 Retaine d earnings 122,000 Totals 1,107,000 1,107,000 Additional information: 1. The investment account includes an investment in common stock of another corporation of $35,000 which management intends to hold for at least three years. The balance of these investments is intended to be sold in the coming year.

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