Harding Company Accounts payable 40,000 65,000 7,000 30,000 40,000 72,000 10,000

Question

Harding Company Accounts payable 40,000 65,000 7,000 30,000 40,000 72,000 10,000 75,000 36,000 30,000 625,000 2,000 Accounts receivable Accrued liabilities Cash Intangible assets Inventory Long-term investments Long-term liabilities Marketable securities Notes payable (short-term) Property, plant, and equipment Prepaid expenses Please show your work for full credit and label your answers A, B, and C A) Based on the data for Harding Company, what is the amount of quick assets ? B) Based on the data for Harding Company, what is the amount of working capital? C) Based on the data for Harding Company, what is the quick ratio, rounded to one decimal point? ;…3(12pt) T' T T T T | Paragraph ::: Artel Do 3a F8

Explanation / Answer

A) QUICK ASSETS: Accounts receivable $       65,000 Cash $       30,000 Marketable securities $       36,000 Quick assets $    131,000 Answer B) WORKING CAPITAL = CURRENT ASSETS-CURRENT LIABILITIES CURRENT ASSETS: Cash $       30,000 Accounts receivable $       65,000 Marketable securities $       36,000 Inventory $       72,000 Prepaid expenses $         2,000 Total current assets $    205,000 CURRENT LIABIITIES: Accounts payable $       40,000 Accrued liabilities $         7,000 Notes payable (Short term) $       30,000 Total current liabilities $       77,000 Net working capital = 205000-77000 = $    128,000 Answer C) QUICK RATIO = QUICK ASSETS/CURRENT LIABILITIES = 131000/77000 = 1.7 Answer

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