Solved: What are the com ps://newconnect.mheducation.com/flow/connect.html hapte

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Solved: What are the com ps://newconnect.mheducation.com/flow/connect.html hapter 3 Homework Saved You are evaluating the balance sheet for PattyCake's Corporation. From the balance sheet you find the following balances: cash and marketable securities $400,000; accounts receivable $1,200,000, inventory = $2,100,000; accrued wages and taxes = $500,000, accounts payable $800,000, and notes payable $600,000. Calculate PattyCake's current ratio. (Round your answer to 2 decimal places.) Calculate PattyCake's quick ratio. (Round your answer to 2 decimal places.) "Quick ratio Calculate PattyCake's cash ratio. (Round your answer to 2 decimal pleces.) times ratiotimes Cash ratio

Explanation / Answer

cash and marketable securities $400,000 accounts receivable $1,200,000 inventory $2,100,000 Total Current Assets $3,700,000 A accrued wages and taxes $500,000 accounts payable $800,000 notes payable $600,000 Total Current liabilities $1,900,000 B Current Ratio = A÷B               1.95 Quick ratio = (A - Inventory ) ÷ B               0.84 Cash Ratio = Cash and marketables / Current liabilities               0.21

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