The current asset section of Guardian Consultant’s balance sheet consists of cash, accounts receivable, and prepaid expenses. The 2021 balance sheet reported the following: cash, $1,500,000; prepaid expenses, $560,000; long-term assets, $2,900,000; and shareholders’ equity, $3,000,000. The current ratio at the end of the year was 2.5 and the debt to equity ratio was 1.6. 1.Current liabilities 2.Long-term liabilities 3.Accounts receivable 4.The acid-test ratio
The current asset section of Guardian Consultant’s balance sheet consists of cash, accounts receivable, and prepaid expenses. The 2021 balance sheet reported the following: cash, $1,500,000; prepaid expenses, $560,000; long-term assets, $2,900,000; and shareholders’ equity, $3,000,000. The current ratio at the end of the year was 2.5 and the debt to equity ratio was 1.6. 1.Current liabilities 2.Long-term liabilities 3.Accounts receivable 4.The acid-test ratio
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The current asset section of Guardian Consultant’s
1.Current liabilities
2.Long-term liabilities
3.Accounts receivable
4.The acid-test ratio
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