The Core Company Had the Following Assets and Liabilities as of December

question 51

Essay

The Core Company had the following assets and liabilities as of December 31: $$\begin{array} { | l | c | } \hline \text { ASSETS } & \\\hline \text { Cash } & \$ 58,000 \\\hline \text { Accounts receivable } & 25,000 \\\hline \text { Inventory } & 20,000 \\\hline \text { Equipment } & 50,000 \\\hline & \\\hline \text { LIABILITIES } & \\\hline \text { Current portion of long-term debt } & 20,000 \\\hline \text { Accounts payable } & 12,000 \\\hline \text { Long-term debt } & 25,000 \\\hline\end{array}$$ Calculate the current ratio, working capital, and quick ratio.

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Definitions:

Marginal Cost

The extra expense associated with manufacturing an additional unit of a product.

Fixed Costs

Costs that do not change with the level of output produced, such as rent, salaries, and insurance premiums.

Birthday Cakes

Specialized cakes decorated and made to celebrate a person's birthday.

Boat Tours

Guided excursions on boats or ships designed to provide passengers with leisure, entertainment, and the opportunity to explore waterways and coastal areas.