Moore Company Has the Following Partial List of Account Balances

question 7

Essay

Moore Company has the following partial list of account balances at year-end:
$$\begin{array} { l r } \text { Accounts payable } & \$ 1,500 \\\text { Accounts receivable } & 4,600 \\\text { Cost of goods sold } & 3,200 \\\text { Cash } & 23,000 \\\text { Taxes payable } & 10,000 \\\text { Land } & 25,000 \\\text { Notes payable (due in } 6 \text { months) } & 1,000 \\\text { Salaries payable } & 900 \\\text { Inventory } & 4,300\end{array}$$ Requirements:
A.Compute the quick ratio.
B.Determine the amount of working capital.
C.Assume that cash is used to pay the balance due on accounts payable.
1.Compute the new quick ratio.
2.Compute the new amount of working capital.
D.Compute the accounts payable turnover ratio (use year-end amounts,)

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Definitions:

Acceptance

A psychological term referring to the experience of feeling or acknowledging that a situation or reality is valid or true.

Stages of Death

are commonly referred to as the Kübler-Ross model, which includes denial, anger, bargaining, depression, and acceptance.

Kübler-Ross

Refers to the Kübler-Ross model, also known as the five stages of grief, which describes a series of emotional stages experienced by terminally ill patients or people who have faced a significant loss.

Denial

A defense mechanism where an individual refuses to accept reality or facts, thereby avoiding dealing with painful feelings or events.