Ritter Company has a current ratio of 3.00 on December 31. On that date the company’s current assets are as follows:
Cash $32,000
Short-term investments 49,300
Accounts receivable (net) 170,000
Inventory 200,000
Prepaid expenses 11,600
Current assets $462,900
Ritter Company’s current liabilities at the beginning of the year were $150,000 and during the year its operating activities provided a cash flow of $60,000.
a. What are the firm’s current liabilities on December 31?
$Answer
154,300
b. What is the firm’s working capital on December 31?
$Answer
308,600
c. What is the quick ratio on December 31?
Round answer to 2 decimal places.
Answer
1.63
d. What is the Ritter’s operating-cash-flow-to-current-liab ilities ratio?
Round answer to 2 decimal places.
Answer
.39
Answers: 2
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Ritter Company has a current ratio of 3.00 on December 31. On that date the company’s current assets...
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