Selected Financial Statement Data for Freeman Company Are Presented Below

question 125

Essay

Selected financial statement data for Freeman Company are presented below. $\begin{array}{lr}&12/31/17\\\text { Cash } & \$ 10,000 \\\text { Short-term investments } & 20,000 \\\text { Accounts receivable } & 60,000 \\\text { Inventories } & 75,000 \\\text { Total current liabilities } & 100,000\end{array}$ Instructions
Compute the following ratios at December 31 2017:
(a) Current.
(b) Acid-test.

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Definitions:

Invoice

a document issued by a seller to a buyer that specifies the products or services provided and the amount due for payment.

Credited

Recognized or accounted for, often referring to the addition of funds to an account.

Selling Price

The price at which a product or service is sold to the purchaser, often determined by the cost of production, market demand, and competition.

Cost

The amount of money required to purchase something or the expense associated with creating a product or service.