Brief Exercise 13-10 Suppose these selected condensed data are taken from recent
ID: 2589457 • Letter: B
Question
Brief Exercise 13-10
Suppose these selected condensed data are taken from recent balance sheets of Bob Evans Farms (in thousands).
2017
2016
Cash
$12,100
$10,800
Accounts receivable
24,000
20,400
Inventory
30,700
30,700
Other current assets
13,200
11,909
Total current assets
$80,000
$73,809
Total current liabilities
$232,000
$338,600
Compute the current ratio for each year. (Round answers to 2 decimal places, e.g. 2.12.)
2017
2016
Current ratio:
2017
2016
Cash
$12,100
$10,800
Accounts receivable
24,000
20,400
Inventory
30,700
30,700
Other current assets
13,200
11,909
Total current assets
$80,000
$73,809
Total current liabilities
$232,000
$338,600
Explanation / Answer
Solution:
Current Ratio = Current Assets / Current Liabilities
Particulars
2017
2016
Current Assets
$80,000
$73,809
Current Liabilities
$232,000
$338,600
Current Ratio
Answer
= $ 80,000 / $ 232,000
= 0.34 : 1
= $ 73,809 / $ 338,600
= 0.22 :1
Particulars
2017
2016
Current Assets
$80,000
$73,809
Current Liabilities
$232,000
$338,600
Current Ratio
Answer
= $ 80,000 / $ 232,000
= 0.34 : 1
= $ 73,809 / $ 338,600
= 0.22 :1
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