3. The following partial balance sheet (S in thousands) for Paisano Seafood Inc.

Question

3. The following partial balance sheet (S in thousands) for Paisano Seafood Inc. is shown below Liabilities and Equity Assets Current assets Cash Accounts receivable (net) Notes receivable Inventories Prepaid expenses Current liabilities: S 60 Accounts payable 170 Other liabilities 50 Total current liabilities 200 Long-term liabilities 25 Total liabilities 505 Sharcholders' equity: s 240 80 320 110 430 Total current asts Captal 150 180 Plant assets (net) -Retained earnings Total shareholders' equity S 760 Total liabilisies and equity 5 760 Total assets The acid-test ratio is (Round your answer to two decimal places.): A) 025 B) 0.88 C) 1.17 D) 1.58. 44. The Constance Corporation's inventory at December 31, 2018, was $125,000 (at cost) based on a physical count of inventory on hand, before any necessary adjustment for the following: Merchandise costing $15,000, shipped fo.b. shipping point from a vendor on December 27, 2019, was received by Constance on January 5, 2019 Merchandise costing $45,000 was shipped to a customer f.o.b. shipping point on December 28 2018, arrived at the customer's location on January 6,2019 Merchandise costing $21,000 was being held on hand for Jess Company on consignment Estimated sales returns are 10% of annual sales. Sales revenue was S550.000 with a gross prof ratio of25% amount should Constance Corporation report as inventory in its December 31,2018 balance sheet? A) S160,250 B) $145,250. C) $187,250 D) $190,250

Explanation / Answer

43) acid test ratio

    Acid test ratio = current assets inventories/ current liabilities

                           = (505-200-25)/320

                          =0.875

         Answer : B)0.88

44) answer :C)$187,250

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