ACC 560 MART Education Terms/acc560mart.com ACC 560 MART Education Terms/acc560mart.com | Page 61

Cash
30,000

$ 15,000

$

Accounts receivable (net)
60,000

70,000

Inventory
50,000

60,000

Plant assets (net)
180,000

200,000
$345,000

$320,000
Accounts payable
60,000

$ 50,000

Mortgage payable (6%)
100,000

100,000

Common stock, $10 par
120,000

140,000

Retained earnings
40,000

55,000
$345,000

$320,000
Instructions
Compute the following ratios at December 31, 2017.
a. Current ratio.
b. Acid-test ratio.

$