The following information applies to the questions displayed below.] Income stat

Question

The following information applies to the questions displayed below.] Income statement and balance sheet data for Great Adventures, Inc., are provided below GREAT ADVENTURES, INC. Income Statement For the Year Ended December 31, 2017 Revenues: Service revenue (clinic, racing, TEAM) Sales revenue (MU watches) $557,000 132,000 otal revenues $689,000 Expenses: Cost of goods sold (MU watches) Operating expenses Depreciation expense Interest expense Income tax expense 77,000 304,976 57,000 30,424 61,200 Total expenses 530,600 Net income $158,400

Explanation / Answer

Solution :

2017

2016

Acid test ratio = quick asset /quick liabilities

                            4.92

                   3.82

quick asset (cash + account receivable + other current asset)

369572

198700

quick liabilities (accounts payable + interest payable + income tax payable)

75070

52020

2017

2016

Acid test ratio = quick asset /quick liabilities

                            4.92

                   3.82

quick asset (cash + account receivable + other current asset)

369572

198700

quick liabilities (accounts payable + interest payable + income tax payable)

75070

52020

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