Firm O has accounts receivable of $33,000, cash of $15,600, property, plant, and

Question

Firm O has accounts receivable of $33,000, cash of $15,600, property, plant, and equipment of $330,000, merchandise inventory of $43,600, accounts payable of $22,200, other accrued liabilities of $7,600, common stock of $260,000, and retained earnings of $132,400. Required: Calculate Firm N’s working capital and current ratio. Firm O has accounts receivable of $33,000, cash of $15,600, property, plant, and equipment of $330,000, merchandise inventory of $43,600, accounts payable of $22,200, other accrued liabilities of $7,600, common stock of $260,000, and retained earnings of $132,400. Required: Calculate Firm N’s working capital and current ratio. Firm O has accounts receivable of $33,000, cash of $15,600, property, plant, and equipment of $330,000, merchandise inventory of $43,600, accounts payable of $22,200, other accrued liabilities of $7,600, common stock of $260,000, and retained earnings of $132,400. Required: Calculate Firm N’s working capital and current ratio.

Explanation / Answer

Working Capital = (Current assets - Current liabilities) = 62,400 Current Ratio = (Current assets/Current liabilities) = (92,200/29,800) = 3.09 Current assets = (33,000+15,600+43,600) = 92,200 Current liabilities = (7,600+22,200) = 29,800

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.