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Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
Edition 6ISBN: 978-1305103962Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
Edition 6ISBN: 978-1305103962 Exercise 15
Current Ratio and Quick (Acid-Test) Ratio
Upton Company has current assets equal to $3,600,000. Of these, $1,100,000 is cash, $1,300,000 is accounts receivable, and the remainder is inventories. Current liabilities total $3,000,000.
Required:
Note : Round answers to two decimal places.
1. Compute the current ratio.
2. Compute the quick (acid-test) ratio.
Upton Company has current assets equal to $3,600,000. Of these, $1,100,000 is cash, $1,300,000 is accounts receivable, and the remainder is inventories. Current liabilities total $3,000,000.
Required:
Note : Round answers to two decimal places.
1. Compute the current ratio.
2. Compute the quick (acid-test) ratio.
Explanation
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Verified
Current ratio:
• Current ratio shows th...
Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
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