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23 Nov 2019
If a companyâs acid-test ratio increases, its current ratio willalso increase?
TrueFalse
If a companyâs acid-test ratio increases, its current ratio willalso increase?
TrueFalse
nguyenngocyLv10
7 Jun 2023
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Bunny GreenfelderLv2
26 Sep 2019
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Related questions
Norsk Optronics, ALS, of Bergen, Norway, had a current ratio of2 on June 30 of the current year. On that date, the companyâsassets were: |
| Cash | $ | 78,000 | ||||||
| Accounts receivable,net | 390,000 | |||||||
| Inventory | 750,000 | |||||||
| Prepaidexpenses | 8,000 | |||||||
| Plant and equipment,net | 1,820,000 | |||||||
| Total assets | $ | 3,046,000 | ||||||
| ||||||||
Norsk Optronics, ALS, of Bergen, Norway, had a current ratio of2 on June 30 of the current year. On that date, the companyâsassets were: |
| Cash | $ | 60,000 | |
| Accounts receivable,net | 450,000 | ||
| Inventory | 660,000 | ||
| Prepaidexpenses | 10,000 | ||
| Plant and equipment,net | 1,860,000 | ||
| Total assets | $ | 3,040,000 | |
| Required: |
| 1. | What was the companyâs working capital on June 30? |
| 2. | What was the companyâs acid-test ratio on June 30?(Round your answer to 2 decimal places.) |
