The following balance sheet Information is provided for Greene Company for Year

Question

The following balance sheet Information is provided for Greene Company for Year 2: Assets Cash Accounts receivable Inventory Prepaid expenses Plant and equipment, net of depreciation Land $ 5,400 11,550 14,700 1,500 19,400 13,300 $65,850 Total assets Liabilities and Stockholders' Equity Accounts payable Salaries payable Bonds payable (Due in ten years) Common stock, no par Retained earnings $ 2,730 8,330 11,500 17,000 26,290 $65,850 Total liabilities and stockholders' equity What Is the company's quick (acid-test) ratio? (Round your answer to 2 declmal places.) Multiple Choice 1.53 0.75 3.00 1.40

Explanation / Answer

Quick ratio=(current assets-inventory-prepaid expenses)/current liabilities

(Cash+account receivable)/(account payable+salary payable)

=(5400+11550)/(2730+8330)

Which is equal to

=1.53(Approx).

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.