Solution-Compute the current ratio

Compute the current ratio

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Reference no: EM132504277

Question - Grande Corporation's comparative balance sheets are presented below.

Grande CORPORATION Balance Sheets December 31
	2019	2018
Cash	$9,000	$8,000
Accounts receivable	38,000	35,000
Inventory	22,500	25,500
Land	15,000	15,000
Building	100,000	90,000
Accumulated depreciation	(26,000)	(25,000)
Total	$158,500	$148,500
Accounts payable	$46,000	$50,000
Common stock	62,000	60,000
Retained earnings	50,500	38,500
Total	$158,500	$148,500

Grande's 2019 income statement included net credit sales of $400,000, cost of goods sold of $110,000, and net income of $40,000.

Instructions - Compute the following ratios for 2019. (a) Current ratio. (b) Acid-test ratio. (c) Receivables turnover. (d) Profit margin. (e) Return on assets.

Reference no: EM132504277

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Compute the current ratio

Reference no: EM132504277

Reference no: EM132504277

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