The current asset section of Guardian Consultant's balance sheet consists of cash, accounts receivable, and prepaid expenses. The balance sheet reported the following: cash, $1,450,000, prepaid expenses, $510,000; long-term assets, $3,900,000; and shareholder equity, $4,000,000. The current ratio at the end of the year was 20 and the debt to equity ratio was 1.4. Required: Determine the following amounts and ratios Note: Round your "The acid-test ratio" answer to 1 decimal place. 1. Current liabilities 2. Long-term liabilities 3. Accounts receivable 4. The acid-test ratio S 980,000
The current asset section of Guardian Consultant's balance sheet consists of cash, accounts receivable, and prepaid expenses. The balance sheet reported the following: cash, $1,450,000, prepaid expenses, $510,000; long-term assets, $3,900,000; and shareholder equity, $4,000,000. The current ratio at the end of the year was 20 and the debt to equity ratio was 1.4. Required: Determine the following amounts and ratios Note: Round your "The acid-test ratio" answer to 1 decimal place. 1. Current liabilities 2. Long-term liabilities 3. Accounts receivable 4. The acid-test ratio S 980,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![The current asset section of Guardian Consultant's balance sheet consists of cash, accounts receivable, and prepaid expenses. The
balance sheet reported the following: cash, $1,450,000, prepaid expenses, $510,000; long-term assets, $3,900,000; and shareholders
equity, $4,000,000. The current ratio at the end of the year was 2.0 and the debt to equity ratio was 1.4.
Required:
Determine the following amounts and ratios
Note: Round your "The acid-test ratio" answer to 1 decimal place.
1. Current liabilities
2. Long-term liabilities
3. Accounts receivable
4. The acid-test ratio
S
980,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3ff68515-e963-4cb1-891d-d97f62b680be%2Ffff21225-27e6-4d82-aa97-34d612dfb0fd%2Fwlkplvj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The current asset section of Guardian Consultant's balance sheet consists of cash, accounts receivable, and prepaid expenses. The
balance sheet reported the following: cash, $1,450,000, prepaid expenses, $510,000; long-term assets, $3,900,000; and shareholders
equity, $4,000,000. The current ratio at the end of the year was 2.0 and the debt to equity ratio was 1.4.
Required:
Determine the following amounts and ratios
Note: Round your "The acid-test ratio" answer to 1 decimal place.
1. Current liabilities
2. Long-term liabilities
3. Accounts receivable
4. The acid-test ratio
S
980,000
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