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gizmo_the_mogwai [7]
2 years ago
8

Selected financial data regarding current assets and current liabilities for Queen’s Line, a competitor in the cruise line indus

try, is provided:($ in millions)Current assets: Cash and cash equivalents $ 331 Current investments 63 Net receivables 230 Inventory 116 Other current assets 135Total current assets $ 875 Current liabilities: Accounts payable $1,025 Short-term debt 694 Other current liabilities 919 Total current liabilities $2,638Required:Calculate the current ratio and the acid-test ratio for Queen’s Line.
Business
1 answer:
RSB [31]2 years ago
8 0

Answer:

Current ratio = 0.33 times

Acid test ratio = 0.29 times

Explanation:

• Current ratio

Current ratio = Total current assets ÷ Total current liabilities

= $875 ÷ $2,638

= 0.33 times

• Acid test ratio

Acid test ratio = Quick assets ÷ total current liabilities

Where,

Quick assets = Total current assets - Inventory

= $875 - $116

= $759

Recall total current liabilities = $2,638

Therefore,

Acid test ratio = $759 ÷ $2,638

Acid test ratio = 0.29 times

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Answer:

Here is what I found, I hope it helps

Explanation:

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Lei Company accumulates the following adjustment data at December 31. 1. Services provided but not recorded total $1,000. 2. Sup
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Answer:

Type of adjustment (prepaid expenses, unearned revenues, accrued revenues, or accrued expenses)

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3. Utility expenses of $225 are unpaid. accrued expenses

4. Services related to Unearned service revenue of $260 were performed. accrued revenues

5. Salaries of $800 are unpaid. accrued expenses

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Status of Each Account before adjustment

1. Services provided but not recorded total $1,000. Revenue understated and cash/account receivable account understated

2. Supplies of $300 have been used. Supplies account overstated and supplies expense account understated

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1. Revenue should be recorded when services are performed.

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Answer:

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