Using the following year-end information for Bauman,LLC,calculate the current ratio and acid-test ratio:
$$\begin{array} { l r }
\text { Cash } & \$ 48,000 \
\text { Short-term investrnents } & 12,000 \
\text { Accounts receivable } & 45,000 \
\text { Inventory } & 225,000 \
\text { Prepaid expenses } & 12,500 \
\text { Accounts payable } & 86,500 \
\text { Other current payables } & 22,000
\end{array}$$

Question

Using the following year-end information for Bauman,LLC,calculate the current ratio and acid-test ratio:
$$\begin{array} { l r } 
\text { Cash } & \$ 48,000 \
\text { Short-term investrnents } & 12,000 \
\text { Accounts receivable } & 45,000 \
\text { Inventory } & 225,000 \
\text { Prepaid expenses } & 12,500 \
\text { Accounts payable } & 86,500 \
\text { Other current payables } & 22,000
\end{array}$$

Quizplus · Accepted Answer

The Answer of Using the following year-end information for Bauman,LLC,calculate the current ratio and acid-test ratio:
$$\begin{array} { l r } 
\text { Cash } & \$ 48,000 \
\text { Short-term investrnents } & 12,000 \
\text { Accounts receivable } & 45,000 \
\text { Inventory } & 225,000 \
\text { Prepaid expenses } & 12,500 \
\text { Accounts payable } & 86,500 \
\text { Other current payables } & 22,000
\end{array}$$

Using the Following Year-End Information for Bauman,LLC,calculate the Current Ratio