1. Current assets: Cash..... $102,000 Temporary investments .... 48,000 Accounts and notes receivable (net).. 120,000 Inventories..... 36,000 Prepaid expenses.. 24,000 Intangible assets Property, plant, and equipment.... Total current assets (net)..... 124,800 55,200 $510,000 Current liabilities: $ 96,000 Accounts and short-term notes payable.... Accrued liabilities... 204,000 Total current liabilities 300,000 Working capital ... $210,000 Current ratio . Quick ratio..... 2. 1.7 $510,000 + $300,000 3. 1.2 $115,200 - $ 96,000
1. Current assets: Cash..... $102,000 Temporary investments .... 48,000 Accounts and notes receivable (net).. 120,000 Inventories..... 36,000 Prepaid expenses.. 24,000 Intangible assets Property, plant, and equipment.... Total current assets (net)..... 124,800 55,200 $510,000 Current liabilities: $ 96,000 Accounts and short-term notes payable.... Accrued liabilities... 204,000 Total current liabilities 300,000 Working capital ... $210,000 Current ratio . Quick ratio..... 2. 1.7 $510,000 + $300,000 3. 1.2 $115,200 - $ 96,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The bond indenture for the 10-year, 9% debenture bonds issued January 2, 20Y5, required
Please see the attachment for details:
a. List the errors in the determination of the three measures of current position analysis.
b. Is the company satisfying the terms of the bond indenture? Explain.
Transcribed Image Text:1.
Current assets:
Cash.....
$102,000
Temporary investments ....
48,000
Accounts and notes receivable (net)..
120,000
Inventories.....
36,000
Prepaid expenses..
24,000
Intangible assets
Property, plant, and equipment....
Total current assets (net).....
124,800
55,200
$510,000
Current liabilities:
$ 96,000
Accounts and short-term notes payable....
Accrued liabilities...
204,000
Total current liabilities
300,000
Working capital ...
$210,000
Transcribed Image Text:Current ratio .
Quick ratio.....
2.
1.7
$510,000 + $300,000
3.
1.2
$115,200 - $ 96,000
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