Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Harding Company Accounts payable $ 40,000 Accounts receivable 65,000 Accrued lia

ID: 2593502 • Letter: H

Question

Harding Company

Accounts payable

$ 40,000

Accounts receivable

65,000

Accrued liabilities

7,000

Cash

30,000

Intangible assets

40,000

Inventory

72,000

Long-term investments

110,000

Long-term liabilities

75,000

Marketable securities

36,000

Notes payable (short-term)

30,000

Property, plant, and equipment

625,000

Prepaid expenses

2,000

Based on the data for Harding Company, what is the amount of quick assets?

a.

$205,000

b.

$203,000

c.

$131,000

d.

$66,000

Based on the data for Harding Company, what is the amount of working capital?

a.

$238,000

b.

$128,000

c.

$168,000

d.

$203,000

Based on the data for Harding Company, what is the quick ratio, rounded to one decimal point?

a.

2.7

b.

2.6

c.

1.7

d.

0.9

Harding Company

Accounts payable

$ 40,000

Accounts receivable

65,000

Accrued liabilities

7,000

Cash

30,000

Intangible assets

40,000

Inventory

72,000

Long-term investments

110,000

Long-term liabilities

75,000

Marketable securities

36,000

Notes payable (short-term)

30,000

Property, plant, and equipment

625,000

Prepaid expenses

2,000

Based on the data for Harding Company, what is the amount of quick assets?

a.

$205,000

b.

$203,000

c.

$131,000

d.

$66,000

Based on the data for Harding Company, what is the amount of working capital?

a.

$238,000

b.

$128,000

c.

$168,000

d.

$203,000

Based on the data for Harding Company, what is the quick ratio, rounded to one decimal point?

a.

2.7

b.

2.6

c.

1.7

d.

0.9

Explanation / Answer

1) c) $131,000

Quick Assets = Assets Receivable +Cash + Marketable securities = $65,000 + $30,000 + $36,000 = $131,000

2) b) $128,000

Working Capital = Current Assets - Current Liabilities

= $65,000 + 30,000 + $72,000 + $36,000 + 2,000 - $40,000 - $7,000 - $30,000

= $128,000

3) c) 1.7

Quick ratio = ( Assets Receivable +Cash + Marketable securities) / Current Liabilities

= $131,000 / ( $40,000 + $7,000 + $30,000)

= $131,000 / ($77,000)

= 1.7

Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
Chat Now And Get Quote