The current ratio for the past two year, and discuss whether the current ratio improve or weaken in the most recent year.

Question

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Answer 1

Question

Chapter 8, Problem 8.2APFA

Requirement – 1

To determine

To calculate: The current ratio for the past two year, and discuss whether the current ratio improve or weaken in the most recent year.

Requirement – 1

Expert Solution

Explanation of Solution

Current ratio:

Current ratio is used to determine the relationship between current assets and current liabilities. Current ratio is determined by dividing current assets and current liabilities.

Formula:

$Current Ratio=Current assetsCurrent liabilities$

The current ratio of Company A for the past two year is as follows:

In 2015:

Here,

Current assets = $890,513 thousand

Current liabilities = $459,093 thousand

$Current ratio=Current assetsCurrent liabilities=$890,513 thousand$459,093 thousand=1.94 times$

In 2014:

Current assets = $927,991 thousand

Current liabilities = $415,478 thousand

$Current ratio=Current assetsCurrent liabilities=$927,991 thousand$415,478thousand=2.24 times$

Conclusion

Therefore, the current ratio in the most recent year (2015) is weakened.

Requirement – 2

To determine

To calculate: The acid test ratio for the past two year, and discuss whether the acid test ratio improve or weaken in the most recent year.

Requirement – 2

Expert Solution

Explanation of Solution

Acid-test Ratio:

It is a ratio used to determine a company’s ability to pay back its current liabilities by liquid assets that are current assets except inventory and prepaid expenses.

Formula:

$Acid-test Ratio=Cash+Accounts Receivable+Short-term InvestmentsCurrent Liabilities$

The acid test ratio of Company A for the past two year is as follows:

In 2015:

Here,

Cash= $410,697 thousand

Accounts receivable = $67,894 thousand

Short-term investment= $0 thousand

Current liabilities = $459,093 thousand

$Acid-test ratio = (Cash+Short-term investments+Accounts receivable)Current liabilities=($410,697 thousand+$0thousand+$67,894thousand)$459,093 thousand=1.04 times$

In 2014:

Here,

Cash= $418,933 thousand

Accounts receivable = $73,882 thousand

Short-term investment= $10,002 thousand

Current liabilities = $415,478 thousand

$Acid-test ratio = (Cash+Short-term investments+Accounts receivable)Current liabilities=($418,933 thousand+$10,002thousand+$73,882 thousand)$415,478 thousand=1.21 times$

Conclusion

Therefore, the acid test ratio in the most recent year (2015) is weakened.

Requirement – 3

To determine

The manner in which the current ratio and acid test ratio will change, if Company A used $100 million in cash to pay $100 million in accounts payable.

Requirement – 3

Expert Solution

Explanation of Solution

Calculate current ratio if company used $100 million in current investments to pay $100 million in current accounts payable.

If the company used $100 million in current investments to pay $100 million in current accounts payable, the current assets and the current liabilities both decreases by $100 million. Thus, this transaction increases the current ratio. The calculation is as given below:

$Current Ratio=Current assetsCurrent liabilities=$890,513,000−$100,000,000$459,093,000 −$100,000,000=2.20 times$

Calculate acid-test ratio if company used $100 million in current investments to pay $100 million in current accounts payable.

If the company used $100 million in current investments to pay $100 million in current accounts payable, the quick assets and the current liabilities both decreases by $100 million. Thus, this transaction increases the acid-test ratio. The calculation is as given below:

$Acid-test ratio=(Cash+Short-term investments+Accounts receivable)Current liabilities=($410,697,000 +$0+$67,894,000−$100,000,000 )$459,093,000−$100,000,000=1.06 times$

Conclusion

Therefore, both current and acid test ratio is increased.

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Answer 2

Question

Chapter 8, Problem 8.2APFA

Requirement – 1

To determine

To calculate: The current ratio for the past two year, and discuss whether the current ratio improve or weaken in the most recent year.

Requirement – 1

Expert Solution

Explanation of Solution

Current ratio:

Current ratio is used to determine the relationship between current assets and current liabilities. Current ratio is determined by dividing current assets and current liabilities.

Formula:

$Current Ratio=Current assetsCurrent liabilities$

The current ratio of Company A for the past two year is as follows:

In 2015:

Here,

Current assets = $890,513 thousand

Current liabilities = $459,093 thousand

$Current ratio=Current assetsCurrent liabilities=$890,513 thousand$459,093 thousand=1.94 times$

In 2014:

Current assets = $927,991 thousand

Current liabilities = $415,478 thousand

$Current ratio=Current assetsCurrent liabilities=$927,991 thousand$415,478thousand=2.24 times$

Conclusion

Therefore, the current ratio in the most recent year (2015) is weakened.

Requirement – 2

To determine

To calculate: The acid test ratio for the past two year, and discuss whether the acid test ratio improve or weaken in the most recent year.

Requirement – 2

Expert Solution

Explanation of Solution

Acid-test Ratio:

It is a ratio used to determine a company’s ability to pay back its current liabilities by liquid assets that are current assets except inventory and prepaid expenses.

Formula:

$Acid-test Ratio=Cash+Accounts Receivable+Short-term InvestmentsCurrent Liabilities$

The acid test ratio of Company A for the past two year is as follows:

In 2015:

Here,

Cash= $410,697 thousand

Accounts receivable = $67,894 thousand

Short-term investment= $0 thousand

Current liabilities = $459,093 thousand

$Acid-test ratio = (Cash+Short-term investments+Accounts receivable)Current liabilities=($410,697 thousand+$0thousand+$67,894thousand)$459,093 thousand=1.04 times$

In 2014:

Here,

Cash= $418,933 thousand

Accounts receivable = $73,882 thousand

Short-term investment= $10,002 thousand

Current liabilities = $415,478 thousand

$Acid-test ratio = (Cash+Short-term investments+Accounts receivable)Current liabilities=($418,933 thousand+$10,002thousand+$73,882 thousand)$415,478 thousand=1.21 times$

Conclusion

Therefore, the acid test ratio in the most recent year (2015) is weakened.

Requirement – 3

To determine

The manner in which the current ratio and acid test ratio will change, if Company A used $100 million in cash to pay $100 million in accounts payable.

Requirement – 3

Expert Solution

Explanation of Solution

Calculate current ratio if company used $100 million in current investments to pay $100 million in current accounts payable.

If the company used $100 million in current investments to pay $100 million in current accounts payable, the current assets and the current liabilities both decreases by $100 million. Thus, this transaction increases the current ratio. The calculation is as given below:

$Current Ratio=Current assetsCurrent liabilities=$890,513,000−$100,000,000$459,093,000 −$100,000,000=2.20 times$

Calculate acid-test ratio if company used $100 million in current investments to pay $100 million in current accounts payable.

If the company used $100 million in current investments to pay $100 million in current accounts payable, the quick assets and the current liabilities both decreases by $100 million. Thus, this transaction increases the acid-test ratio. The calculation is as given below:

$Acid-test ratio=(Cash+Short-term investments+Accounts receivable)Current liabilities=($410,697,000 +$0+$67,894,000−$100,000,000 )$459,093,000−$100,000,000=1.06 times$

Conclusion

Therefore, both current and acid test ratio is increased.

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Answer 3

Question

Chapter 8, Problem 8.2APFA

Requirement – 1

To determine

To calculate: The current ratio for the past two year, and discuss whether the current ratio improve or weaken in the most recent year.

Requirement – 1

Expert Solution

Explanation of Solution

Current ratio:

Current ratio is used to determine the relationship between current assets and current liabilities. Current ratio is determined by dividing current assets and current liabilities.

Formula:

$Current Ratio=Current assetsCurrent liabilities$

The current ratio of Company A for the past two year is as follows:

In 2015:

Here,

Current assets = $890,513 thousand

Current liabilities = $459,093 thousand

$Current ratio=Current assetsCurrent liabilities=$890,513 thousand$459,093 thousand=1.94 times$

In 2014:

Current assets = $927,991 thousand

Current liabilities = $415,478 thousand

$Current ratio=Current assetsCurrent liabilities=$927,991 thousand$415,478thousand=2.24 times$

Conclusion

Therefore, the current ratio in the most recent year (2015) is weakened.

Requirement – 2

To determine

To calculate: The acid test ratio for the past two year, and discuss whether the acid test ratio improve or weaken in the most recent year.

Requirement – 2

Expert Solution

Explanation of Solution

Acid-test Ratio:

It is a ratio used to determine a company’s ability to pay back its current liabilities by liquid assets that are current assets except inventory and prepaid expenses.

Formula:

$Acid-test Ratio=Cash+Accounts Receivable+Short-term InvestmentsCurrent Liabilities$

The acid test ratio of Company A for the past two year is as follows:

In 2015:

Here,

Cash= $410,697 thousand

Accounts receivable = $67,894 thousand

Short-term investment= $0 thousand

Current liabilities = $459,093 thousand

$Acid-test ratio = (Cash+Short-term investments+Accounts receivable)Current liabilities=($410,697 thousand+$0thousand+$67,894thousand)$459,093 thousand=1.04 times$

In 2014:

Here,

Cash= $418,933 thousand

Accounts receivable = $73,882 thousand

Short-term investment= $10,002 thousand

Current liabilities = $415,478 thousand

$Acid-test ratio = (Cash+Short-term investments+Accounts receivable)Current liabilities=($418,933 thousand+$10,002thousand+$73,882 thousand)$415,478 thousand=1.21 times$

Conclusion

Therefore, the acid test ratio in the most recent year (2015) is weakened.

Requirement – 3

To determine

The manner in which the current ratio and acid test ratio will change, if Company A used $100 million in cash to pay $100 million in accounts payable.

Requirement – 3

Expert Solution

Explanation of Solution

Calculate current ratio if company used $100 million in current investments to pay $100 million in current accounts payable.

If the company used $100 million in current investments to pay $100 million in current accounts payable, the current assets and the current liabilities both decreases by $100 million. Thus, this transaction increases the current ratio. The calculation is as given below:

$Current Ratio=Current assetsCurrent liabilities=$890,513,000−$100,000,000$459,093,000 −$100,000,000=2.20 times$

Calculate acid-test ratio if company used $100 million in current investments to pay $100 million in current accounts payable.

If the company used $100 million in current investments to pay $100 million in current accounts payable, the quick assets and the current liabilities both decreases by $100 million. Thus, this transaction increases the acid-test ratio. The calculation is as given below:

$Acid-test ratio=(Cash+Short-term investments+Accounts receivable)Current liabilities=($410,697,000 +$0+$67,894,000−$100,000,000 )$459,093,000−$100,000,000=1.06 times$

Conclusion

Therefore, both current and acid test ratio is increased.

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Answer 4

Question

Chapter 8, Problem 8.2APFA

Requirement – 1

To determine

To calculate: The current ratio for the past two year, and discuss whether the current ratio improve or weaken in the most recent year.

Requirement – 1

Expert Solution

Explanation of Solution

Current ratio:

Current ratio is used to determine the relationship between current assets and current liabilities. Current ratio is determined by dividing current assets and current liabilities.

Formula:

$Current Ratio=Current assetsCurrent liabilities$

The current ratio of Company A for the past two year is as follows:

In 2015:

Here,

Current assets = $890,513 thousand

Current liabilities = $459,093 thousand

$Current ratio=Current assetsCurrent liabilities=$890,513 thousand$459,093 thousand=1.94 times$

In 2014:

Current assets = $927,991 thousand

Current liabilities = $415,478 thousand

$Current ratio=Current assetsCurrent liabilities=$927,991 thousand$415,478thousand=2.24 times$

Conclusion

Therefore, the current ratio in the most recent year (2015) is weakened.

Requirement – 2

To determine

To calculate: The acid test ratio for the past two year, and discuss whether the acid test ratio improve or weaken in the most recent year.

Requirement – 2

Expert Solution

Explanation of Solution

Acid-test Ratio:

It is a ratio used to determine a company’s ability to pay back its current liabilities by liquid assets that are current assets except inventory and prepaid expenses.

Formula:

$Acid-test Ratio=Cash+Accounts Receivable+Short-term InvestmentsCurrent Liabilities$

The acid test ratio of Company A for the past two year is as follows:

In 2015:

Here,

Cash= $410,697 thousand

Accounts receivable = $67,894 thousand

Short-term investment= $0 thousand

Current liabilities = $459,093 thousand

$Acid-test ratio = (Cash+Short-term investments+Accounts receivable)Current liabilities=($410,697 thousand+$0thousand+$67,894thousand)$459,093 thousand=1.04 times$

In 2014:

Here,

Cash= $418,933 thousand

Accounts receivable = $73,882 thousand

Short-term investment= $10,002 thousand

Current liabilities = $415,478 thousand

$Acid-test ratio = (Cash+Short-term investments+Accounts receivable)Current liabilities=($418,933 thousand+$10,002thousand+$73,882 thousand)$415,478 thousand=1.21 times$

Conclusion

Therefore, the acid test ratio in the most recent year (2015) is weakened.

Requirement – 3

To determine

The manner in which the current ratio and acid test ratio will change, if Company A used $100 million in cash to pay $100 million in accounts payable.

Requirement – 3

Expert Solution

Explanation of Solution

Calculate current ratio if company used $100 million in current investments to pay $100 million in current accounts payable.

If the company used $100 million in current investments to pay $100 million in current accounts payable, the current assets and the current liabilities both decreases by $100 million. Thus, this transaction increases the current ratio. The calculation is as given below:

$Current Ratio=Current assetsCurrent liabilities=$890,513,000−$100,000,000$459,093,000 −$100,000,000=2.20 times$

Calculate acid-test ratio if company used $100 million in current investments to pay $100 million in current accounts payable.

If the company used $100 million in current investments to pay $100 million in current accounts payable, the quick assets and the current liabilities both decreases by $100 million. Thus, this transaction increases the acid-test ratio. The calculation is as given below:

$Acid-test ratio=(Cash+Short-term investments+Accounts receivable)Current liabilities=($410,697,000 +$0+$67,894,000−$100,000,000 )$459,093,000−$100,000,000=1.06 times$

Conclusion

Therefore, both current and acid test ratio is increased.

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Answer 5

Chapter 8, Problem 8.2APFA

Requirement – 1

To determine

To calculate: The current ratio for the past two year, and discuss whether the current ratio improve or weaken in the most recent year.

Requirement – 1

Expert Solution

Explanation of Solution

Current ratio:

Current ratio is used to determine the relationship between current assets and current liabilities. Current ratio is determined by dividing current assets and current liabilities.

Formula:

$Current Ratio=Current assetsCurrent liabilities$

The current ratio of Company A for the past two year is as follows:

In 2015:

Here,

Current assets = $890,513 thousand

Current liabilities = $459,093 thousand

$Current ratio=Current assetsCurrent liabilities=$890,513 thousand$459,093 thousand=1.94 times$

In 2014:

Current assets = $927,991 thousand

Current liabilities = $415,478 thousand

$Current ratio=Current assetsCurrent liabilities=$927,991 thousand$415,478thousand=2.24 times$

Conclusion

Therefore, the current ratio in the most recent year (2015) is weakened.

Requirement – 2

To determine

To calculate: The acid test ratio for the past two year, and discuss whether the acid test ratio improve or weaken in the most recent year.

Requirement – 2

Expert Solution

Explanation of Solution

Acid-test Ratio:

It is a ratio used to determine a company’s ability to pay back its current liabilities by liquid assets that are current assets except inventory and prepaid expenses.

Formula:

$Acid-test Ratio=Cash+Accounts Receivable+Short-term InvestmentsCurrent Liabilities$

The acid test ratio of Company A for the past two year is as follows:

In 2015:

Here,

Cash= $410,697 thousand

Accounts receivable = $67,894 thousand

Short-term investment= $0 thousand

Current liabilities = $459,093 thousand

$Acid-test ratio = (Cash+Short-term investments+Accounts receivable)Current liabilities=($410,697 thousand+$0thousand+$67,894thousand)$459,093 thousand=1.04 times$

In 2014:

Here,

Cash= $418,933 thousand

Accounts receivable = $73,882 thousand

Short-term investment= $10,002 thousand

Current liabilities = $415,478 thousand

$Acid-test ratio = (Cash+Short-term investments+Accounts receivable)Current liabilities=($418,933 thousand+$10,002thousand+$73,882 thousand)$415,478 thousand=1.21 times$

Conclusion

Therefore, the acid test ratio in the most recent year (2015) is weakened.

Requirement – 3

To determine

The manner in which the current ratio and acid test ratio will change, if Company A used $100 million in cash to pay $100 million in accounts payable.

Requirement – 3

Expert Solution

Explanation of Solution

Calculate current ratio if company used $100 million in current investments to pay $100 million in current accounts payable.

If the company used $100 million in current investments to pay $100 million in current accounts payable, the current assets and the current liabilities both decreases by $100 million. Thus, this transaction increases the current ratio. The calculation is as given below:

$Current Ratio=Current assetsCurrent liabilities=$890,513,000−$100,000,000$459,093,000 −$100,000,000=2.20 times$

Calculate acid-test ratio if company used $100 million in current investments to pay $100 million in current accounts payable.

If the company used $100 million in current investments to pay $100 million in current accounts payable, the quick assets and the current liabilities both decreases by $100 million. Thus, this transaction increases the acid-test ratio. The calculation is as given below:

$Acid-test ratio=(Cash+Short-term investments+Accounts receivable)Current liabilities=($410,697,000 +$0+$67,894,000−$100,000,000 )$459,093,000−$100,000,000=1.06 times$

Conclusion

Therefore, both current and acid test ratio is increased.

Answer 6

Chapter 8, Problem 8.2APFA

Requirement – 1

To determine

To calculate: The current ratio for the past two year, and discuss whether the current ratio improve or weaken in the most recent year.

Requirement – 1

Expert Solution

Explanation of Solution

Current ratio:

Current ratio is used to determine the relationship between current assets and current liabilities. Current ratio is determined by dividing current assets and current liabilities.

Formula:

$Current Ratio=Current assetsCurrent liabilities$

The current ratio of Company A for the past two year is as follows:

In 2015:

Here,

Current assets = $890,513 thousand

Current liabilities = $459,093 thousand

$Current ratio=Current assetsCurrent liabilities=$890,513 thousand$459,093 thousand=1.94 times$

In 2014:

Current assets = $927,991 thousand

Current liabilities = $415,478 thousand

$Current ratio=Current assetsCurrent liabilities=$927,991 thousand$415,478thousand=2.24 times$

Conclusion

Therefore, the current ratio in the most recent year (2015) is weakened.

Answer 7

Chapter 8, Problem 8.2APFA

Requirement – 1

To determine

To calculate: The current ratio for the past two year, and discuss whether the current ratio improve or weaken in the most recent year.

Answer 8

Requirement – 1

Expert Solution

Explanation of Solution

Current ratio:

Current ratio is used to determine the relationship between current assets and current liabilities. Current ratio is determined by dividing current assets and current liabilities.

Formula:

$Current Ratio=Current assetsCurrent liabilities$

The current ratio of Company A for the past two year is as follows:

In 2015:

Here,

Current assets = $890,513 thousand

Current liabilities = $459,093 thousand

$Current ratio=Current assetsCurrent liabilities=$890,513 thousand$459,093 thousand=1.94 times$

In 2014:

Current assets = $927,991 thousand

Current liabilities = $415,478 thousand

$Current ratio=Current assetsCurrent liabilities=$927,991 thousand$415,478thousand=2.24 times$

Answer 9

Requirement – 1

Expert Solution

Answer 10

Requirement – 1

Expert Solution

Answer 11

Expert Solution

Answer 12

Conclusion

Therefore, the current ratio in the most recent year (2015) is weakened.

Answer 13

Requirement – 2

To determine

To calculate: The acid test ratio for the past two year, and discuss whether the acid test ratio improve or weaken in the most recent year.

Requirement – 2

Expert Solution

Explanation of Solution

Acid-test Ratio:

It is a ratio used to determine a company’s ability to pay back its current liabilities by liquid assets that are current assets except inventory and prepaid expenses.

Formula:

$Acid-test Ratio=Cash+Accounts Receivable+Short-term InvestmentsCurrent Liabilities$

The acid test ratio of Company A for the past two year is as follows:

In 2015:

Here,

Cash= $410,697 thousand

Accounts receivable = $67,894 thousand

Short-term investment= $0 thousand

Current liabilities = $459,093 thousand

$Acid-test ratio = (Cash+Short-term investments+Accounts receivable)Current liabilities=($410,697 thousand+$0thousand+$67,894thousand)$459,093 thousand=1.04 times$

In 2014:

Here,

Cash= $418,933 thousand

Accounts receivable = $73,882 thousand

Short-term investment= $10,002 thousand

Current liabilities = $415,478 thousand

$Acid-test ratio = (Cash+Short-term investments+Accounts receivable)Current liabilities=($418,933 thousand+$10,002thousand+$73,882 thousand)$415,478 thousand=1.21 times$

Conclusion

Therefore, the acid test ratio in the most recent year (2015) is weakened.

Answer 14

Requirement – 2

To determine

To calculate: The acid test ratio for the past two year, and discuss whether the acid test ratio improve or weaken in the most recent year.

Answer 15

Requirement – 2

Expert Solution

Explanation of Solution

Acid-test Ratio:

It is a ratio used to determine a company’s ability to pay back its current liabilities by liquid assets that are current assets except inventory and prepaid expenses.

Formula:

$Acid-test Ratio=Cash+Accounts Receivable+Short-term InvestmentsCurrent Liabilities$

The acid test ratio of Company A for the past two year is as follows:

In 2015:

Here,

Cash= $410,697 thousand

Accounts receivable = $67,894 thousand

Short-term investment= $0 thousand

Current liabilities = $459,093 thousand

$Acid-test ratio = (Cash+Short-term investments+Accounts receivable)Current liabilities=($410,697 thousand+$0thousand+$67,894thousand)$459,093 thousand=1.04 times$

In 2014:

Here,

Cash= $418,933 thousand

Accounts receivable = $73,882 thousand

Short-term investment= $10,002 thousand

Current liabilities = $415,478 thousand

$Acid-test ratio = (Cash+Short-term investments+Accounts receivable)Current liabilities=($418,933 thousand+$10,002thousand+$73,882 thousand)$415,478 thousand=1.21 times$

Answer 16

Requirement – 2

Expert Solution

Answer 17

Requirement – 2

Expert Solution

Answer 18

Expert Solution

Answer 19

Conclusion

Therefore, the acid test ratio in the most recent year (2015) is weakened.

Answer 20

Requirement – 3

To determine

The manner in which the current ratio and acid test ratio will change, if Company A used $100 million in cash to pay $100 million in accounts payable.

Requirement – 3

Expert Solution

Explanation of Solution

Calculate current ratio if company used $100 million in current investments to pay $100 million in current accounts payable.

If the company used $100 million in current investments to pay $100 million in current accounts payable, the current assets and the current liabilities both decreases by $100 million. Thus, this transaction increases the current ratio. The calculation is as given below:

$Current Ratio=Current assetsCurrent liabilities=$890,513,000−$100,000,000$459,093,000 −$100,000,000=2.20 times$

Calculate acid-test ratio if company used $100 million in current investments to pay $100 million in current accounts payable.

If the company used $100 million in current investments to pay $100 million in current accounts payable, the quick assets and the current liabilities both decreases by $100 million. Thus, this transaction increases the acid-test ratio. The calculation is as given below:

$Acid-test ratio=(Cash+Short-term investments+Accounts receivable)Current liabilities=($410,697,000 +$0+$67,894,000−$100,000,000 )$459,093,000−$100,000,000=1.06 times$

Conclusion

Therefore, both current and acid test ratio is increased.

Answer 21

Requirement – 3

To determine

The manner in which the current ratio and acid test ratio will change, if Company A used $100 million in cash to pay $100 million in accounts payable.

Answer 22

Requirement – 3

Expert Solution

Explanation of Solution

Calculate current ratio if company used $100 million in current investments to pay $100 million in current accounts payable.

If the company used $100 million in current investments to pay $100 million in current accounts payable, the current assets and the current liabilities both decreases by $100 million. Thus, this transaction increases the current ratio. The calculation is as given below:

$Current Ratio=Current assetsCurrent liabilities=$890,513,000−$100,000,000$459,093,000 −$100,000,000=2.20 times$

Calculate acid-test ratio if company used $100 million in current investments to pay $100 million in current accounts payable.

If the company used $100 million in current investments to pay $100 million in current accounts payable, the quick assets and the current liabilities both decreases by $100 million. Thus, this transaction increases the acid-test ratio. The calculation is as given below:

$Acid-test ratio=(Cash+Short-term investments+Accounts receivable)Current liabilities=($410,697,000 +$0+$67,894,000−$100,000,000 )$459,093,000−$100,000,000=1.06 times$

Answer 23

Requirement – 3

Expert Solution

Answer 24

Requirement – 3

Expert Solution

Answer 25

Expert Solution

Answer 26

Conclusion

Therefore, both current and acid test ratio is increased.

Answer 27

Ch. 8 - Prob. 1RQ Ch. 8 - Prob. 2RQ Ch. 8 - Prob. 3RQ Ch. 8 - Provide examples of current liabilities in the...Ch. 8 - Prob. 5RQ Ch. 8 - Prob. 6RQ Ch. 8 - How does commercial paper differ from a normal...Ch. 8 - Prob. 8RQ Ch. 8 - Prob. 9RQ Ch. 8 - Prob. 10RQ

The current ratio for the past two year, and discuss whether the current ratio improve or weaken in the most recent year.

Videos

To calculate: The current ratio for the past two year, and discuss whether the current ratio improve or weaken in the most recent year.

Explanation of Solution

To calculate: The acid test ratio for the past two year, and discuss whether the acid test ratio improve or weaken in the most recent year.

Explanation of Solution

The manner in which the current ratio and acid test ratio will change, if Company A used $100 million in cash to pay $100 million in accounts payable.

Explanation of Solution

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Chapter 8 Solutions