Current assets Inventory and equipment 4,150,250 Cash 475,750 Net receivables 81
ID: 2922968 • Letter: C
Question
Current assets
Inventory and equipment 4,150,250
Cash 475,750
Net receivables 815,555
Cash equivalent 1,050,050
Total Assets Blank 1 format answer with commas, but no dollar signs or deimal
Current liabilities 2,125,150
Cash operating expense 2, 595,555
Operating income 250,175
Total operating revenue 3,985,686
#days in period – 365
Current Ratio = assets/liabilities Blank 2 , include two numbers past the decimal point
Quick Ratio = (cash+cash equiv+net rec)/current liabilities Blank 3 , include two numbers past the decimal point
Operating Margin = operating income/total operating revenue Blank 4 , convert to a percentage with one number past the decimal point and include the % symbol at the end
Explanation / Answer
Blank1, total assets = 6,491,605
1) Current Ratio = assets/liabilities
Current Ratio = ( 4,150,250 + 475,750 + 815,555 + 1,050,050)/2,125,150 = 3.05
2) Quick Ratio = (cash+cash equiv+net rec)/current liabilities
Quick Ratio = (475,750 + 815,555 + 1,050,050)/2,125,150 = 1.10
3) Operating Margin = operating income/total operating revenue
Operating Margin = 250,175/3,985,686 = 6.3%
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