Pritchett Company reported the following year-end data: $ 20,500 7,100 12,700 Cash Short-term investments Accounts receivable (current) Inventory 22,100 Prepaid (current) assets 15,100 Total current liabilities 31,000 Compute the (a) current ratio and (b) acid-test ratio. Complete this question by entering your answers in the tabs below.
Pritchett Company reported the following year-end data: $ 20,500 7,100 12,700 Cash Short-term investments Accounts receivable (current) Inventory 22,100 Prepaid (current) assets 15,100 Total current liabilities 31,000 Compute the (a) current ratio and (b) acid-test ratio. Complete this question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Pritchett Company reported the following year-end data:
$ 20,500
7,100
12,700
22,100
15,100
31,000
Compute the (a) current ratio and (b) acid-test ratio.
Complete this question by entering your answers in the tabs below.
Cash
Short-term investments
Accounts receivable (current)
Inventory
Prepaid (current) assets
Total current liabilities
Current Ratio Acid Test Ratio
Compute the acid-test ratio.
Numerator:
Acid-Test Ratio
<Current Ratio
Denominator:
Acid Test Ratio >
W
W
Acid-Test Ratio
Acid-test ratio)
to 1
Transcribed Image Text:Pritchett Company reported the following year-end data:
Cash
Short-term investments,
Accounts receivable (current)
Inventory
Prepaid (current) assets
Total current liabilities
Compute the (a) current ratio and (b) acid-test ratio.
Complete this question by entering your answers in the tabs below.
Current Ratio Acid Test Ratio
Compute the current ratio.
$ 20,500
7,100
12,700
22,100
15, 100
31,000
Numerator:
1
Current Ratio
Denominator:
Current Ratio
=
Current Ratio
Current ratio
to 1
Acid Test Ratio >
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