The Following Items Are Reported on Denver Company's Balance Sheet

question 5

Essay

The following items are reported on Denver Company's balance sheet:
​ $$\begin{array} { | l | r | } \hline \text { Cash } & \$ 190,000 \\\hline \text { Marketable securities } & 160,000 \\\hline \text { Accounts receivable (net) } & 240,000 \\\hline \text { Inventory } & 350,000 \\\hline \text { Accounts payable } & 600,000 \\\hline\end{array}$$ ​
Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place.

---

Definitions:

Cash Dividends

Distributions of a corporation's earnings to shareholders as a return on their investment, typically in the form of cash.

Asset Balances

The values of all the assets that a company has listed on its balance sheet, these values are assessed at the end of a reporting period.

Net Income

The profit a company has after deducting all its expenses from its total revenues, also known as the bottom line.

Paid Dividends

Cash or other assets distributed to shareholders out of the company's earnings.