Chapter 3, Problem 3.4BE

Presented below is information available for Bestfit Company. Current Assets Inventories $110,000 Prepaid expenses 30,000 Accounts receivable 61,000 Short-term investments 75,000 Cash 4,000 Total current assets $280,000 Total current liabilities are $120,000. The acid-test ratio for Bestfit is Select one: a. 0.54 to 1. O b. 2.08 to 1. O c. 1.17 to 1. O d. 2.33 to 1.

In the preparation of the 20x4 consolidated balance sheet, the computer equipment will be:   A. Debited for 1,000  B. Debited for 15,000               C. Credited for 24,000 D. Debited for 40,000

Given below is AU Chiefs Company’s financial statements. Compute for the financial rations and showthe solutions in a sheet of paper.1. Expenses to sale ratio2. Return on assets3. Return on Equity4. Asset Turnover ratio   2020 2019 Cash 122,500 104,700 Accounts Receivable 90,650 80,550 Inventory 66,200 53,000 Prepaid Expense 85,450 106,000 Total Current Assets 364,800 344,250 Property, Plant and Equipment 925,000 786,350 TOTAL ASSETS 1,654,600 1,475,350       Total Current Liability 381,500 423,350 Long-term Liabilities 359,900 230,600 Mabini, Capital 913,200 821,400 Total Liability and Equity 1,654,600 1,475,350       Sales 1,047,050 1,151,755 Cost of Sales 322,750 355,025 Gross Profit 724,300 796,730 Selling Expenses 353,250 388,575 Administrative Expenses 128,150 140,965 Operating Income 242,900 267,190 Interest Income…