A Corporation Reports the Following Year-End Balance Sheet Data Calculate the Corporation's Current Ratio and Its Acid-Test Ratio

question 123

Essay

A corporation reports the following year-end balance sheet data:
$\begin{array}{|l|r|l|r|}\hline \text { Cash } & \$ 40,000 & \text { Current liabilities } & \$ 64,000 \\\hline \text { Accounts receivable } & 35,000 & \text { Long-term liabilities } & 72,000 \\\hline \text { Inventory } & 60,000 & \text { Common stock } & 100,000 \\\hline \text { Equipment } & \underline{150,000} & \text { Retained earnings } & 49,000 \\\hline \text { Total assets } & \$ 285,000 & \text { Total liabilities and equity } & \$ 285,000 \\\hline\end{array}$ Calculate the corporation's current ratio and its acid-test ratio.

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Definitions:

Memory

A cognitive function that involves the encoding, storing, and retrieving of information.

Occipital Lobe

The area of the brain situated in the rear of the head, tasked with interpreting visual data.

Visual Input

Information received by the eyes that is processed by the visual system, leading to visual perception and recognition.

Pons

A part of the brainstem that links the medulla oblongata and the thalamus, playing a critical role in the regulation of breathing, communication between different parts of the brain, and sensations.