Extracts from the balance sheet of Detroit,Inc.are as follows:
$2019$ Assets
Current Assets:
$\begin{array}{ll}
\text { Cash and Cash Equivalents } & \$ 30,000 \
\text { Accounts Receivable, Net } & 65,000 \
\text { Merchandise Inventory } & \underline{50,000} \
\text { Total Current Assets } & \underline{145,000} \
\text { Long-term Investments } & 150,000 \
\text { Property, Plant, and Equipment, Net } & \underline{250,000} \
\text { Total Assets } & \underline{\$ 545,000} \
\text { Total Current Liabilities } & \underline{\$ 150,000}
\end{array}$
Compute the acid-test ratio.

Question

Extracts from the balance sheet of Detroit,Inc.are as follows:
 $2019$ Assets
Current Assets:
 $\begin{array}{ll}
\text { Cash and Cash Equivalents } & \$ 30,000 \
\text { Accounts Receivable, Net } & 65,000 \
\text { Merchandise Inventory } & \underline{50,000} \
\text { Total Current Assets } & \underline{145,000} \
\text { Long-term Investments } & 150,000 \
\text { Property, Plant, and Equipment, Net } & \underline{250,000} \
\text { Total Assets } & \underline{\$ 545,000} \
\text { Total Current Liabilities } & \underline{\$ 150,000}
\end{array}$
 Compute the acid-test ratio.

Quizplus · Accepted Answer

The Answer of Extracts from the balance sheet of Detroit,Inc.are as follows:
 $2019$ Assets
Current Assets:
 $\begin{array}{ll}
\text { Cash and Cash Equivalents } & \$ 30,000 \
\text { Accounts Receivable, Net } & 65,000 \
\text { Merchandise Inventory } & \underline{50,000} \
\text { Total Current Assets } & \underline{145,000} \
\text { Long-term Investments } & 150,000 \
\text { Property, Plant, and Equipment, Net } & \underline{250,000} \
\text { Total Assets } & \underline{\$ 545,000} \
\text { Total Current Liabilities } & \underline{\$ 150,000}
\end{array}$
 Compute the acid-test ratio.

Extracts from the Balance Sheet of Detroit,Inc 201920192019 Assets Current Assets

Extracts from the Balance Sheet of Detroit,Inc $2019$ Assets
Current Assets