1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
never [62]
2 years ago
13

Dj, inc., has net working capital of $2,170, current liabilities of $4,590, and inventory of $3,860.

Business
2 answers:
lions [1.4K]2 years ago
7 0

a. The current ratio is 1.47.

b. The quick ratio is 0.63.

Further Explanation:

Current ratio:

Current ratio measures the firms’ ability to meet their short-term requirements. The current ratio is calculated by dividing the current assets by current liabilities.

Quick ratio:

Quick ratio which is also known as acid-test ratio, which is a type of liquidity ratio which measures the firms’ ability to use their quick assets to meet the expenses of current liabilities. The quick ratio is calculated by dividing the quick assets by current liabilities.

Step 1:

Compute the amount of current assets:

\begin{aligned}\text{Net\:working\:capital}&=\text{Current\:assets\:-\:Current\:liabilities}\\\$2,170&=\text{Current\:assets\:-\:\$4,590}\\\text{Current\:assets}&=\$6,760\end{aligned}

Step 2:

Compute current ratio:

\begin{aligned}\text{Current\:ratio}&=\dfrac{\text{Current\:assets}}{\text{Current\:liabilities}}\\&=\dfrac{\$6,760}{\$4,590}\\&=1.47\end{aligned}

Step 3:

Compute the amount of quick assets:

\begin{aligned}\text{Quick\:assets}&=\text{Current\:assets\:-\:Inventory}\\&={\$6,760\:-\:\$3,860}\\&=\$2,900}\end{aligned}

Step 4:

Compute quick ratio:

\begin{aligned}\text{Quick\:ratio}&=\dfrac{\text{Quick\:assets}}{\text{Current\:liabilities}}\\&=\dfrac{\$2,900}{\$4,590}\\&=0.63\end{aligned}

Thus, the current ratio is 1.47 and the quick ratio is 0.63.

Learn More:

1. Recording bank accounts

brainly.com/question/3212764

2. Account's accumulated value

brainly.com/question/1033449

3. Trade offs  

brainly.com/question/5057443

Answer Details:

Grade: High school

Chapter: Accounting ratios

Subject: Accounting

Keywords: Dj inc., has net working capital of $2,170, current liabilities of $4,590, and inventory of $3,860, what is the current ratio, do not round intermediate calculations and round your answer to 2 decimal places, 32.16, what is the quick ratio, do not round intermediate calculations and round your answer to 2 decimal places, 32.16, current ratio is 1.47,and quick ratio is 0.63.

jenyasd209 [6]2 years ago
6 0

The above answer can be explained as under -

Given,

Current Liabilities =  $ 4,590

Net working capital = $ 2,170

So, the current assets will be calculated as under -

Net working capital = Current assets - Current liabilities

$ 2,170 = Current assets - $ 4,590

Current assets =  $ 2,170  + $ 4,590

Current assets = $ 6,760

The liquid or quick assets will be calculated as -

Current assets - Inventory = Quick assets

Quick assets = $ 6,760 - $ 3,860

Quick assets = $ 2,900.

Now,

1. Current ratio = \frac{Current assets }{Current Liabilities}

Current ratio = \frac{$ 6,760 }{$ 4,590} = 1.47

2. Quick ratio = \frac{Quick assets }{Current Liabilities}

Quick ratio = \frac{$ 2,900 }{$ 4,590} = 0.63

You might be interested in
A machine with a cost of $142,000 and accumulated depreciation of $97,000 is sold for $56,000 cash. The amount that should be re
Temka [501]
A machine would cost $142,000 and the depreciation of $98,000
6 0
3 years ago
Why is knowledge of the key success factors in an industry important?
AURORKA [14]
<span>Distinguish how companies whose profits reflect growth in your industry are able to structure their business to cope with changes in customer needs. ... Assess your strategic objectives and your business activities to ensure that they align with achievement of your key success factors.</span>
3 0
3 years ago
Opinion: Based on marginal analysis that examines costs and benefits, why do some people choose NOT to eat organic food?
Katyanochek1 [597]

Non-organic food is cheaper, and often has brand names, which appeal to the consumer more than an organic brand does.

3 0
3 years ago
Read 2 more answers
If it takes a supplier 25 days to deliver an order once it has been placed and the standard deviation of daily demand is 20, whi
Volgvan

Answer:

option (B) 100

Explanation:

Data provided in the question:

Number of days supplier takes to deliver an order once it has been placed i.e the lead time = 25 days

Standard deviation of daily demand = 20

Now,

Standard deviation of usage during lead time

= Standard deviation of daily demand × √(Lead time)

= 20 × √25

= 20 × 5

= 100

Hence,

The answer is option (B) 100

7 0
3 years ago
Hey I need help with these True/False
Burka [1]

1. This is the hardest question to answer of all of them. It depends on who you read. The New York Times has a different policy than the Huffington Post. I'll say it is intended to be true.

2. True. That's why they are called specialty shops.

3. Sometimes. There are other possibilities. I think you are intended to say true.

4. True. They do.

5. False. It's the other way around.

8 0
3 years ago
Other questions:
  • What could you learn in the successful turkey hunting course?
    6·1 answer
  • Ahnberg Corporation had 560,000 shares of common stock issued and outstanding at January 1. No common shares were issued during
    10·1 answer
  • a. Consumption schedule The variable on the vertical (y) axis is (Click to select) and the variable on the horizontal (x) axis i
    11·1 answer
  • Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The
    5·2 answers
  • Research indicates that 17 percent of consumers recognize the Flatfeet brand of athletic wear. If there are 30,000 consumers in
    9·1 answer
  • A banker can lend money at 9.1% compounded monthly or at 9.3% compounded quarterly. If the length of the loan is 15 years, which
    7·1 answer
  • Which of the following positions is primarily responsible for raising capital and investing funds?A) The treasurerB) The COOC) T
    13·1 answer
  • A system of accounting for manufacturing operations that produces timely information about inventories and manufacturing costs p
    12·1 answer
  • Which of the following will typically offer the lowest interest rate?
    11·2 answers
  • Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $110,000 and fair market value of $165,000). Simon i
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!