Harding Company Accounts payable $ 40,000 Accounts receivable 65,000 Accrued lia
ID: 2593502 • Letter: H
Question
Harding Company
Accounts payable
$ 40,000
Accounts receivable
65,000
Accrued liabilities
7,000
Cash
30,000
Intangible assets
40,000
Inventory
72,000
Long-term investments
110,000
Long-term liabilities
75,000
Marketable securities
36,000
Notes payable (short-term)
30,000
Property, plant, and equipment
625,000
Prepaid expenses
2,000
Based on the data for Harding Company, what is the amount of quick assets?
a.
$205,000
b.
$203,000
c.
$131,000
d.
$66,000
Based on the data for Harding Company, what is the amount of working capital?
a.
$238,000
b.
$128,000
c.
$168,000
d.
$203,000
Based on the data for Harding Company, what is the quick ratio, rounded to one decimal point?
a.
2.7
b.
2.6
c.
1.7
d.
0.9
Harding Company
Accounts payable
$ 40,000
Accounts receivable
65,000
Accrued liabilities
7,000
Cash
30,000
Intangible assets
40,000
Inventory
72,000
Long-term investments
110,000
Long-term liabilities
75,000
Marketable securities
36,000
Notes payable (short-term)
30,000
Property, plant, and equipment
625,000
Prepaid expenses
2,000
Based on the data for Harding Company, what is the amount of quick assets?
a.
$205,000
b.
$203,000
c.
$131,000
d.
$66,000
Based on the data for Harding Company, what is the amount of working capital?
a.
$238,000
b.
$128,000
c.
$168,000
d.
$203,000
Based on the data for Harding Company, what is the quick ratio, rounded to one decimal point?
a.
2.7
b.
2.6
c.
1.7
d.
0.9
Explanation / Answer
1) c) $131,000
Quick Assets = Assets Receivable +Cash + Marketable securities = $65,000 + $30,000 + $36,000 = $131,000
2) b) $128,000
Working Capital = Current Assets - Current Liabilities
= $65,000 + 30,000 + $72,000 + $36,000 + 2,000 - $40,000 - $7,000 - $30,000
= $128,000
3) c) 1.7
Quick ratio = ( Assets Receivable +Cash + Marketable securities) / Current Liabilities
= $131,000 / ( $40,000 + $7,000 + $30,000)
= $131,000 / ($77,000)
= 1.7
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