Hammer Corporation Wrote Off $185,000 of Obsolete Inventory at December

question 39

Essay

Hammer Corporation wrote off $185,000 of obsolete inventory at December 31,2011.
Required:
What effect did this write-off have on the company's 2011 current and quick ratios?

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Definitions:

Cultures

The shared values, beliefs, norms, customs, arts, history, folklore, and institutions of a group of people that are passed down from generation to generation.

Genetic Mate

Refers to the selection of a partner for reproduction based on genetic compatibility or traits.

Sociobiologists

Scientists who study the biological basis of social behavior across species, including humans, often focusing on how evolution has shaped social behaviors.

Prehistoric Ancestors

Refers to the human species and their relatives who lived before the advent of written records.