The following financial data have been taken from the records of CPZ Enterprises
ID: 2347117 • Letter: T
Question
The following financial data have been taken from the records of CPZ Enterprises.Accounts Recievable................................................$200,000
Accounts payable.....................................................$80,000
Bonds payable, due in 10 years....................................$300,000
Cash...................................................................$100,000
Interest payable, due in three months.............................$10,000
Inventory..............................................................$440,000
Land....................................................................$250,000
Notes payable, due in six months....................................$50,000
What is the company's acid-test ratio?
a. 0.68 b. 1.68 c. 2.14 d. 2.31
Explanation / Answer
(100,000+200,000)/(80,000+50,000+10,000)= 2.14 (c)