Calculate liquidity measures The following amounts were reported on theDecember 31, 2013, balance sheet: Cash.......................................... $ 8,000Accounts receivable .................. 22,000Common stock ......................... 40,000Wages payable ......................... 5,000Retained earnings ..................... 80,000Land .......................................... 20,000Accounts payable ..................... $ 15,000Bonds payable .......................... 120,000Merchandise inventory .............. 30,000Buildings and equipment, net ofaccumulated depreciation ..... 180,000 Required:a. Calculate working capital at December 31, 2013.b. Calculate the current ratio at December 31, 2013.c. Calculate the acid-test ratio at December 31, 2013.
Calculate liquidity measures The following amounts were reported on the
December 31, 2013, balance sheet:
Cash.......................................... $ 8,000
Accounts receivable .................. 22,000
Common stock ......................... 40,000
Wages payable ......................... 5,000
Retained earnings ..................... 80,000
Land .......................................... 20,000
Accounts payable ..................... $ 15,000
Bonds payable .......................... 120,000
Merchandise inventory .............. 30,000
Buildings and equipment, net of
accumulated depreciation ..... 180,000
Required:
a. Calculate
b. Calculate the
c. Calculate the acid-test ratio at December 31, 2013.
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