Working Capital and Short Term Liquidity Ratios Bell Company has a current ratio of 2.85 on December 31. On that date the company's current assets are as follows: Cash Short-term investments Accounts receivable (net) Inventory Prepaid expenses Current assets $31,400 52,000 169,000 220,000 11,600 $484,000 Bell Company's current liabilities at the beginning of the year were $135,000 and during the year its operating activities provided a cash flow of $50,000. a. What are the firm's current liabilities on December 31? Round answer to the nearest whole number. 169,825 b. What is the firm's working capital on December 31? Round answer to the nearest whole number. 314,175 c. What is the quick ratio on December 31? Round answer to 2 decimal places. 1.49 d. What is the Bell's operating-cash-flow-to-current-liabilities ratio? Round answer to 2 decimal places. 0.29 X Check
Working Capital and Short Term Liquidity Ratios Bell Company has a current ratio of 2.85 on December 31. On that date the company's current assets are as follows: Cash Short-term investments Accounts receivable (net) Inventory Prepaid expenses Current assets $31,400 52,000 169,000 220,000 11,600 $484,000 Bell Company's current liabilities at the beginning of the year were $135,000 and during the year its operating activities provided a cash flow of $50,000. a. What are the firm's current liabilities on December 31? Round answer to the nearest whole number. 169,825 b. What is the firm's working capital on December 31? Round answer to the nearest whole number. 314,175 c. What is the quick ratio on December 31? Round answer to 2 decimal places. 1.49 d. What is the Bell's operating-cash-flow-to-current-liabilities ratio? Round answer to 2 decimal places. 0.29 X Check
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 4PB
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