Wentwood Clothing Store Reported the Following Selected Items at June

question 108

Essay

Wentwood Clothing Store reported the following selected items at June 30,2019 (previous year - 2018 - amounts are also given as needed):
$\begin{array}{|l|r|}\hline\text { Cash } & \$ 80,000 \\\hline \text { Accounts Receivable, net: } & \\\text { June } 30,2019 & 45,000 \\\text { June } 30,2018 & 53,000 \\\hline \text { Accounts Payable } & 55,000 \\\hline \text { Cost of Goods Sold } & 288,000 \\\hline \text { Merchandise Inventory } & \\\text { June } 30,2019 & 70,000 \\\text { June } 30,2018 & 90,000 \\\hline \text { Net Credit Sales Revenue } & 480,000 \\\hline \text { Long-Term Assets } & 220,000 \\\hline \text { Long-Term Liabilities } & 140,000 \\\hline \text { Other Current Assets } & 150,000 \\\hline \text { Other Current Liabilities } & 130,000 \\\hline \text { Short-term Investments } & 40,000\\\hline\end{array}$ Compute Wentwood's acid-test ratio on June 30,2019.Show your computations.Round the answer to 2 decimal places.

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Definitions:

Unemployed

Individuals who are capable of working and seeking work but are without jobs during the period of assessment.

Unemployment Insurance Benefits

Payments made by the government or a government-insured program to unemployed individuals who meet specific eligibility requirements.

Longest Recession

A period of extended economic decline longer than usual, marked by a significant reduction in economic activity.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations and marked by significant events shaping modern history.