If the only current assets shown on the balance sheet for

Reference no: EM13599545

Assume that the current ratio for Arch Company is 2.0, its acid- test ratio is 1.5, and its working capital is $ 300,000. Answer each of the following questions independently, always referring to the original information.

a. How much does the firm have in current liabilities?

b. If the only current assets shown on the balance sheet for Arch Company are Cash, Accounts Receivable, and Merchandise Inventory, how much does the firm have in Merchandise Inventory?

c. If the firm collects an account receivable of $ 100,000, what will its new current ratio and working capital be?

d. If the firm pays an account payable of $ 100,000, what will its new current ratio and working capital be?

e. If the firm sells inventory that was purchased for $ 50,000 at a cash price of $ 60,000, what will its new acid- test ratio be?

Reference no: EM13599545

Questions Cloud

Kinnion medical had a cash balance of 8000 on january 1 the : kinnion medical clinic has budgeted the following cash flows. january february march cash receipts 100000 106000

Tylers consulting company has purchased a new 15000 copier : tylers consulting company has purchased a new 15000 copier. this overhead cost will be shared by the purchasing

What percentage increase in sales would enable the company : mccarty pointers inc. expects to begin operations on january 1 2012 it will operate as a specialty sales company that

The lemon company made a credit sale of 20000 the invoice : the lemon company made a credit sale of 20000. the invoice was sent today with the terms 310 net 30. this customer

If the only current assets shown on the balance sheet for : assume that the current ratio for arch company is 2.0 its acid- test ratio is 1.5 and its working capital is 300000.

Madison industries has equivalent units of 2000 for : madison industries has equivalent units of 2000 for materials and for conversion costs. total manufacturing costs are

Conan companys monthly activity level ranged from a low of : conan companys monthly activity level ranged from a low of 17000 units in may to a high of 26000 units in october.

A publicly owned corporation the companys outstanding stock : prairie fire snowmobile corp. manufactures and sells snowmobiles in wisconsin minnesota and the dakotas. a publicly

A company is using the high-low method and has determined : a company is using the high-low method and has determined the following production for the months of january february

User Account

All Pages