A corporation reports the following year-end balance sheet data:
$\begin{array}{|l|r|l|r|}
\hline \text { Cash } & \$ 40,000 & \text { Current liabilities } & \$ 64,000 \
\hline \text { Accounts receivable } & 35,000 & \text { Long-term liabilities } & 72,000 \
\hline \text { Inventory } & 60,000 & \text { Common stock } & 100,000 \
\hline \text { Equipment } & \underline{150,000} & \text { Retained earnings } & 49,000 \
\hline \text { Total assets } & \$ 285,000 & \text { Total liabilities and equity } & \$ 285,000 \
\hline
\end{array}$ Calculate the corporation's current ratio and its acid-test ratio.

Question

A corporation reports the following year-end balance sheet data:
 $\begin{array}{|l|r|l|r|}
\hline \text { Cash } & \$ 40,000 & \text { Current liabilities } & \$ 64,000 \
\hline \text { Accounts receivable } & 35,000 & \text { Long-term liabilities } & 72,000 \
\hline \text { Inventory } & 60,000 & \text { Common stock } & 100,000 \
\hline \text { Equipment } & \underline{150,000} & \text { Retained earnings } & 49,000 \
\hline \text { Total assets } & \$ 285,000 & \text { Total liabilities and equity } & \$ 285,000 \
\hline
\end{array}$ Calculate the corporation's current ratio and its acid-test ratio.

Quizplus · Accepted Answer

The Answer of A corporation reports the following year-end balance sheet data:
 $\begin{array}{|l|r|l|r|}
\hline \text { Cash } & \$ 40,000 & \text { Current liabilities } & \$ 64,000 \
\hline \text { Accounts receivable } & 35,000 & \text { Long-term liabilities } & 72,000 \
\hline \text { Inventory } & 60,000 & \text { Common stock } & 100,000 \
\hline \text { Equipment } & \underline{150,000} & \text { Retained earnings } & 49,000 \
\hline \text { Total assets } & \$ 285,000 & \text { Total liabilities and equity } & \$ 285,000 \
\hline
\end{array}$ Calculate the corporation's current ratio and its acid-test ratio.

A Corporation Reports the Following Year-End Balance Sheet Data Calculate the Corporation's Current Ratio and Its Acid-Test Ratio