The Following Data Are Taken from the Balance Sheet at the End

question 85

Essay

The following data are taken from the balance sheet at the end of the current year. $$\begin{array} { l l } \text { Cash } & \$ 154,000 \\\text { Accounts receivable } & 210,000 \\\text { Inventory } & 240,000 \\\text { Prepaid expenses } & 15,000 \\\text { Temporary investments } & 350,000 \\\text { Property, plant, and equipment } & 375,000 \\\text { Accounts payable } & 245,000 \\\text { Accrued liabilities } & 4,000 \\\text { Income tax payable } & 10,000 \\\text { Notes payable, short-term } & 85,000\end{array}$$ Determine the a) working capital, b) current ratio, and c) quick ratio. Round ratios to the nearest tenth.

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Definitions:

Income Inequality

The uneven distribution of income within a population, leading to gaps between the wealthiest and the poorest individuals.

Income Distribution

The way in which total income is divided among the population or different groups within society, affecting economic inequality.

Developing Economies

Countries with a lower level of industrialization, less advanced technological infrastructure, and lower living standards relative to developed countries.

Income Distribution

The way in which the total income of a society is divided among its members.