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aev [14]
3 years ago
5

Presented below is information available for Concord Corporation. Current Assets Cash $ 4500 Short-term investments 50500 Accoun

ts receivable 66000 Inventory 86000 Prepaid expenses 35000 Total current assets $ 242000 Total current liabilities are $50000. The acid-test ratio for Concord is:
Business
1 answer:
disa [49]3 years ago
3 0

Answer:

2.42 times

Explanation:

The computation of the acid test ratio is shown below:

Acid test ratio = Quick Assets ÷ Current liabilities

where,

Quick Assets = Cash + short term investment + account receivable

                      = $4,500 + $50,500 + $66,000

                      = $121,000

And, the current liabilities is $50,000

So the acid test ratio is

= $121,000 ÷ 50,000

= 2.42 times

Basically we applied the above formula to find out the acid test ratio

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Answer:

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3 years ago
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Answer:

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