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potternatalie90
21.04.2020 •
Business
What is the acid-test ratio for a merchant with the following account balances?
(Round your answer to two decimal places.)
Cash $22,000
Short-term investments 41,000
Net current receivables 50,000
Merchandise inventory 93,000
Total current liabilities 275,000
A) 0.75B) 0.41C) 0.60D) 0.81
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Ответ:
B. 0.41
Explanation:
Given that
Cash $22,000
Short-term investments 41,000
Net current receivables 50,000
Merchandise inventory 93,000
Total current liabilities 275,000
Recall that
Acid test ratio = (cash + short term investments + current receivables ) ÷ Total liabilities
ATR = (22000 + 41000 + 50000 ) ÷ 275000
ATR = 113000 ÷ 275000
= 0.4109
= 0.41
Note that, inventories is not added because Acid test ratio also called quick ratio compares current asset with current liabilities and inventories can be difficult to sell in current terms.
Ответ:
B) 0.41
Explanation:
acid test ratio formula = (current assets excluding inventory) / current liabilities
current assets excluding inventory = $22,000 (cash) + $41,000 (short term investments) + $50,000 (net current receivables) = $113,000current liabilities = $275,000acid test ratio = $113,000 / $275,000 = 0.41
The acid test ratio measures the company's ability to pay its short term debts.
Ответ: