The following data are taken from the financial statements of Dellmont Company. Additional information:
Information taken from the financial statements of Dellmont's major competitor: Information taken from industry publications:
Average current ratio is 2.5:1
Average acid-test ratio is 1.9:1
Instructions
Calculate Dellmont's working capital and current and acid-test ratios, and comment on the company's liquidity.

Question

The following data are taken from the financial statements of Dellmont Company.  Additional information:
Information taken from the financial statements of Dellmont's major competitor:  Information taken from industry publications:
Average current ratio is 2.5:1
Average acid-test ratio is 1.9:1
Instructions
Calculate Dellmont's working capital and current and acid-test ratios, and comment on the company's liquidity.

Quizplus · Accepted Answer

The Answer of The following data are taken from the financial statements of Dellmont Company.  Additional information:
Information taken from the financial statements of Dellmont's major competitor:  Information taken from industry publications:
Average current ratio is 2.5:1
Average acid-test ratio is 1.9:1
Instructions
Calculate Dellmont's working capital and current and acid-test ratios, and comment on the company's liquidity.

The Following Data Are Taken from the Financial Statements of Dellmont