Guinther & Sons, Inc. Read the information for Guinther & Sons, Inc. Calculate t

Question

Guinther & Sons, Inc.

Read the information for Guinther & Sons, Inc. Calculate the current ratio for Guinther & Sons.

The following information is given for Sego Company: Cash $50,000 Inventory $45,000 Land 75,000 Accumulated Depreciation 40,000 Plant & Equipment 150,000 Accounts Payable 60,000 What are the company's current assets? a. $220,000 b. $95,000 c. $130,000 d. $155,000

Oreo Company has current assets of $20,000, current liabilities of $8,000, and long-term liabilities of $3,000. Oreo wants to buy new equipment. How much of its existing cash can Oreo use to acquire equipment without allowing its current ratio to decline below 2.0 to 1?

Guinther & Sons, Inc.

Guinther & Sons, Inc. a retailer of men's clothing, earned a net profit of $77,000 for 2014. The balance sheet for Guinther & Sons includes the following items:

Explanation / Answer

Current ratio = Current assets/Current liabilities

= ($29,000+$79,000+$39,000+$3,000)÷($29,000+$21,000)

= 3

Correct option is 3 to 1

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