Accounts receivable( net) 70,000 60,000
Inventory 60,000 50,000
Plant assets( net) 200,000 180,000
$ 320,000
$ 345,000
Accounts payable |
$ 50,000 |
$ |
60,000 |
|
|
Mortgage payable( 6 %) 100,000 100,000
Common stock, $ 10 par 140,000 120,000
Retained earnings 55,000 40,000
$ 320,000
$ 345,000
Instructions Compute the following ratios at December 31, 2017. a. Current ratio. b. Acid-test ratio.