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The following items are reported on a company's balance sheet: Cash $550,800 Marketable securities 430,300 Accounts receivable (net) 409,100 Inventory 331,000 Accounts payable 662,000 Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place.

The following items are reported on a company's balance sheet: Cash $550,800 Marketable securities 430,300 Accounts receivable (net) 409,100 Inventory 331,000 Accounts payable 662,000 Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 34CE
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I know in order to find the current ratio you divide your current assets by current liabilities.  I also know in order to find the Quick ratio you divide your quick assets by your current liabilities. But everytime I enter a number it says incorrect.

The following items are reported on a company's balance sheet: Cash $550,800 Marketable securities 430,300 Accounts receivable (net) 409,100 Inventory 331,000 Accounts payable 662,000 Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place. a. Current ratio b. Quick ratio
Transcribed Image Text:The following items are reported on a company's balance sheet: Cash $550,800 Marketable securities 430,300 Accounts receivable (net) 409,100 Inventory 331,000 Accounts payable 662,000 Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place. a. Current ratio b. Quick ratio
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Step 1

Ratio analysis helps to analyze the financial statements of the company. The management can take decisions on the basis of these ratios. It is also helpful to compare two or more financial statements.

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