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you are evaluating the balance sheet for Patty casecorporation from the balance sheet you find...

you are evaluating the balance sheet for Patty case corporation from the balance sheet you find the following balances cash and markable securities $370,000 account receivable $1,260,000 inventory equals 2,16,000 wages and taxes $530,000 and account payable equals 830, 000 and note payable equals 660,000 calculate Patty cakes current ratio calculate Patty's current quick ratio calculate Patty cakes cash ratio

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Expert Solution

Cash and marketable securities 370000
Account receivable 1260000
Inventory 216000
Current assets 1846000
Wages and taxes 530000
Accounts payable 830000
Note payable 660000
Current liabilities 2020000
Current ratio = Current assets / Current liabilities = 1846000 / 2020000 = 0.91
Quick ratio = ( Current assets - Inventory ) / Current liabilities = ( 1846000 - 216000 ) / 2020000 = 0.81
Cash ratio = Cash and marketable securities / Current liabilities = 370000 / 2020000 = 0.18

jeff jeffy answered 2 years ago
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