1. The Cunningham Company has provided the following account balances: Cash $76,000; Short-term investments $8,000; Accounts receivable $12,000; Inventory $96,000; Long-term notes receivable $4,000; Equipment $192,0003; Factory Building $360,000; Intangible assets $12,000%; Accounts payable $90,000; Accrued liabilities payable $12,000; Short-term notes payable $42,000%3; Long-term notes payable $184,000. What is Cunningham's current ratio?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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1. The Cunningham Company has provided the
following account balances:
Cash $76,000;
Short-term investments $8,00%3;
Accounts receivable $12,000;
Inventory $96,000;
Long-term notes receivable $4,000;
Equipment $192,000;
Factory Building $360,000;
Intangible assets $12,000%3;
Accounts payable $90,000%3;
Accrued liabilities payable $12,000;
Short-term notes payable $42,000;
Long-term notes payable $184,000.
What is Cunningham's current ratio?
Transcribed Image Text:1. The Cunningham Company has provided the following account balances: Cash $76,000; Short-term investments $8,00%3; Accounts receivable $12,000; Inventory $96,000; Long-term notes receivable $4,000; Equipment $192,000; Factory Building $360,000; Intangible assets $12,000%3; Accounts payable $90,000%3; Accrued liabilities payable $12,000; Short-term notes payable $42,000; Long-term notes payable $184,000. What is Cunningham's current ratio?
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Ratio analysis means where different ratio of various years of years companies has been compared and results are interpreted to make effective decision regarding future course of action.

 

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