The financial statements for Silver Service Company include the following items:

Compute the acid-test ratio for 2018.(Round your answer to two decimal places)

Question

The financial statements for Silver Service Company include the following items:

Compute the acid-test ratio for 2018.(Round your answer to two decimal places)

Quizplus · Accepted Answer

B)
Acid-test ratio = (Cash + Short-term investments + Net current receivables)/ Total current liabilities
Acid-test ratio = (Cash $42,000 + Short-term investments $14,500 + Net current receivables $48,000)/ (Accounts payable $127,000 + Salaries Payable $16,000)
Acid-test ratio = $104,500 / $143,000
Acid-test ratio = 0.73

The Financial Statements for Silver Service Company Include the Following