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Question
The current year-end balance sheet data for a company are shown below:
| Assets: | |
| Cash | $ 18,000 |
| Marketable securities | 45,000 |
| Accounts receivable (net) | 157,500 |
| Merchandise inventory | 139,500 |
| Long-term investments | 135,000 |
| Plant assets (net) | 517,500 |
| Total assets | $1,012,500 |
| Liabilities and equity: | |
| Accounts payable | $ 168,700 |
| Accrued liabilities | 90,000 |
| Notes payable (secured by plant assets) | 234,800 |
| Common stock ($12 par) | 180,000 |
| Contributed capital in excess of par | 135,000 |
| Retained earnings | 204,000 |
| Total liabilities and equity | $1,012,500 |
Calculate this company's:
(1) Working capital
(2) Acid-test ratio
Answer
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