Working Capital and Short Term Liquidity Ratios Bell Company has a current ratio of 2.85 on December 31. On that date the company's current assets are as follows: Cash $27,400 Short-term investments 53,000 Accounts receivable (net) 169,000 Inventory 200,000 Prepaid expenses 12,600 Current assets $462,000 Bell Company's current liabilities at the beginning of the year were $135,000 and during the year its operating activities provided a cash flow of $50,000. a. What are the firm's current liabilities on December 31? Round answer to the nearest whole number. Answer b. What is the firm's working capital on December 31? Round answer to the nearest whole number. Answer c. What is the quick ratio on December 31? Round answer to 2 decimal places. Answer d. What is the Bell's operating-cash-flow-to-current-liabilities ratio? Round answer to 2 decimal places. Answer
Working Capital and Short Term Liquidity Ratios Bell Company has a current ratio of 2.85 on December 31. On that date the company's current assets are as follows: Cash $27,400 Short-term investments 53,000 Accounts receivable (net) 169,000 Inventory 200,000 Prepaid expenses 12,600 Current assets $462,000 Bell Company's current liabilities at the beginning of the year were $135,000 and during the year its operating activities provided a cash flow of $50,000. a. What are the firm's current liabilities on December 31? Round answer to the nearest whole number. Answer b. What is the firm's working capital on December 31? Round answer to the nearest whole number. Answer c. What is the quick ratio on December 31? Round answer to 2 decimal places. Answer d. What is the Bell's operating-cash-flow-to-current-liabilities ratio? Round answer to 2 decimal places. Answer
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 4PB
Related questions
Question
Practice Pack
Bell Company has a
| Cash | $27,400 |
| Short-term investments | 53,000 |
| 169,000 | |
| Inventory | 200,000 |
| Prepaid expenses | 12,600 |
| Current assets | $462,000 |
Bell Company's current liabilities at the beginning of the year were $135,000 and during the year its operating activities provided a
a. What are the firm's current liabilities on December 31?
Round answer to the nearest whole number.
Answer
b. What is the firm's working capital on December 31?
Round answer to the nearest whole number.
Answer
c. What is the quick ratio on December 31?
Round answer to 2 decimal places.
Answer
d. What is the Bell's operating-cash-flow-to-current-liabilities ratio?
Round answer to 2 decimal places.
Answer
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Includes step-by-step video
Trending now
This is a popular solution!
Learn your way
Includes step-by-step video
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT