Moore Company Has the Following Partial List of Account Balances

Essay

Moore Company has the following partial list of account balances at year-end:
$$\begin{array} { l r } \text { Accounts payable } & \$ 1,500 \\\text { Accounts receivable } & 4,600 \\\text { Cost of goods sold } & 3,200 \\\text { Cash } & 23,000 \\\text { Taxes payable } & 10,000 \\\text { Land } & 25,000 \\\text { Notes payable (due in } 6 \text { months) } & 1,000 \\\text { Salaries payable } & 900 \\\text { Inventory } & 4,300\end{array}$$ Requirements:
A.Compute the quick ratio.
B.Determine the amount of working capital.
C.Assume that cash is used to pay the balance due on accounts payable.
1.Compute the new quick ratio.
2.Compute the new amount of working capital.
D.Compute the accounts payable turnover ratio (use year-end amounts,)