You are provided the following Information of ABC Co.:December 31, 2019December 31, 2020Current Assets$56,000$52,00073,000125,000Long-Term Assets39,00095,000Total AssetsShort-Term Notes Payable (current) 19,000Long-Term Notes PayableTotal Liabilities39,00015,00034,00061,00022,00061,000Stockholders' Equity64,000Which of the following statements regarding ABC's current ratio is correct?Multiple ChoiceThe 2020 current ratio of ABC Co, is 133The liquidity of ABC has improved from 2019 to 2020.The 2019 current ratio of ABC Co. is 279ABC does not have sufficient current assets to pay its current liabilites in yeers 2019 and 2020

Solution: Current ratio = Current assets / Current liabilities Current ratio for 2019 = $56,000 /…

You are provided the following Information of ABC Co.: December 31, 2019 December 31, 2020 $52,000 73,000 125,000 39,000 22,000 61,000 Current Assets $56,000 39,000 95,000 Short-Term Notes Payable (current) 19,000 Long-Term Assets Total Assets Long-Term Notes Payable Total Liabilities 15,000 34,000 Stockholders' Equity 61,000 64,000 Which of the following statements regarding ABC's current ratio is correct?

You are provided the following Information of ABC Co.: December 31, 2019 December 31, 2020 $52,000 73,000 125,000 39,000 22,000 61,000 Current Assets $56,000 39,000 95,000 Short-Term Notes Payable (current) 19,000 Long-Term Assets Total Assets Long-Term Notes Payable Total Liabilities 15,000 34,000 Stockholders' Equity 61,000 64,000 Which of the following statements regarding ABC's current ratio is correct?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 7RE: Refer to the information in RE13-5. Assume that on December 31, 2019, the investment in Smith...

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