Booker Corporation had the following comparative current assets and current liabilities: December 31, 2016 December 13, 2015 Current Assets Cash $60,000 $30,000 Short-term Investments $40,000 $10,000 Accounts Receivable $55,000 $95,000 Inventory $110,000 $90,000 Prepaid Expenses $35,000 $20,000 Total Current Assets $300,000 $245,000 Current Liabilities Accounts Payable $140,000 $110,000 Salaries Payable $40,000 $30,000 Income Tax Payable $20,000 $15,000 Total Current Liabilities $200,000 $155,000 During 2016, credit sales and cost of goods sold were $750,000 and $400,000, respectively. Compute the current ratio for 2016.
Booker Corporation had the following comparative current assets and current liabilities: December 31, 2016 December 13, 2015 Current Assets Cash $60,000 $30,000 Short-term Investments $40,000 $10,000 Accounts Receivable $55,000 $95,000 Inventory $110,000 $90,000 Prepaid Expenses $35,000 $20,000 Total Current Assets $300,000 $245,000 Current Liabilities Accounts Payable $140,000 $110,000 Salaries Payable $40,000 $30,000 Income Tax Payable $20,000 $15,000 Total Current Liabilities $200,000 $155,000 During 2016, credit sales and cost of goods sold were $750,000 and $400,000, respectively. Compute the current ratio for 2016.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Booker Corporation had the following comparative current assets and current liabilities:
December 31, 2016 December 13, 2015
Current Assets
Cash $60,000 $30,000
Short-term Investments $40,000 $10,000
Accounts Receivable $55,000 $95,000
Inventory $110,000 $90,000
Prepaid Expenses $35,000 $20,000
Total Current Assets $300,000 $245,000
Current Liabilities
Accounts Payable $140,000 $110,000
Salaries Payable $40,000 $30,000
Income Tax Payable $20,000 $15,000
Total Current Liabilities $200,000 $155,000
During 2016, credit sales and cost of goods sold were $750,000 and $400,000, respectively.
Compute the
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