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Question
The following data are taken from the balance sheet at the end of the current year:
Cash $154,000
Temporary investments 350,000
Accounts receivable 210,000
Inventory 240,000
Prepaid expenses 15,000
Property, plant, and equipment 375,000
Accounts payable 245,000
Accrued liabilities 4,000
Income tax payable 10,000
Notes payable, short-term 85,000
Determine the (a) working capital, (b) current ratio, and (c) quick ratio. (Round ratios to one decimal place.)
Answer
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