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

question 134

Essay

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

---

Definitions:

Money Supply

The entire monetary value available in an economy at a designated time.

Savings Deposits

Deposits that earn interest but have no specific maturity date.

Time Deposits

Bank deposits that cannot be withdrawn before a date specified at the time of deposit without incurring penalties.

M1

A category of the money supply that includes all physical money like coins and currency, as well as demand deposits and other liquid assets held by the central bank.