Compute the current ratio and acid-test ratio for each of the following separate cases. (Round ratios to two decimals.) Which company case is in the best position to meet short-term obligations? Explain. Cash........ Short-term investments Current receivables. Inventory. Prepaid expenses. Total current assets Current liabilities. Case X Case Y $2,000 0 $ 110 0 590 2,300 500 $3,500 Case Z $1,000 600 350 700 2,650 4,100 200 900 $5,200 $7,300 $2,200 $1,200 $3,750

Compute the current ratio and acid-test ratio for each of the following separate cases. (Round ratios to two decimals.) Which company case is in the best position to meet short-term obligations? Explain. Cash........ Short-term investments Current receivables. Inventory. Prepaid expenses. Total current assets Current liabilities. Case X Case Y $2,000 0 $ 110 0 590 2,300 500 $3,500 Case Z $1,000 600 350 700 2,650 4,100 200 900 $5,200 $7,300 $2,200 $1,200 $3,750

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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