Solution-Calculate the cash ratio for each year

Calculate the cash ratio for each year

Assignment Help Financial Accounting

Reference no: EM132472710

Birtle CORPORATION
2014 and 2015 Statement of Financial Position

Current assets	Assets 2014	2015	Liabilities and Owners' Equity 2014 Current liabilities		2015
Cash	$ 9,279	$ 11,173	Accounts payable	$ 41,060	$ 43,805
Accounts receivable	23,683	25,760	Notes payable	16,157	16,843
Inventory	42,636	46,915
Total	$ 75,598	$ 83,848	Total	$ 57,217	$ 60.648
			Long-term debt	$ 40,000	S 35.000
			Owners' equity
			Common stock and paid-in surplus	$ 50,000	S 50.000
			Retained earnings	200,428	236,167
Net plant and equipment	$272,047	$297,967	Total	$250,428	$286,167
Total assets	$347,645	$381,815	Total liabilities and owners' equity	$347,645	$381,815

Based on the statement of financial position given for Birtle

Question a. Calculate the current ratio for each year. (Round the final answers to 2 decimal places.)

Question b. Calculate the quick ratio for each year (Round the final answers to 3 decimal places.)

Question c. Calculate the cash ratio for each year. (Round the final answers to 3 decimal places.)

Reference no: EM132472710

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Calculate the cash ratio for each year

Reference no: EM132472710

Reference no: EM132472710

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