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:

Product Costs

Costs that are directly linked to the creation of a product, including materials, labor, and overhead.

September

The ninth month of the Gregorian calendar.

Manufacturing Overhead Cost

All indirect costs associated with manufacturing, including indirect labor, materials, and expenses that cannot be directly attributed to a specific product.

Units Produced

The total quantity of finished goods a company produces over a specific period of time.