A Corporation Reports the Following Year-End Balance Sheet Data Calculate the Corporation's Current Ratio and Its Acid-Test Ratio

question 75

Essay

A corporation reports the following year-end balance sheet data:
$$\begin{array} { | l | r | l | r | } \hline \text { Cash } & \$ 40,000 & \text { Current liabilities } & \$ 64,000 \\\hline \text { Accourts receivable } & 35,000 & \text { Lone-term liabilities } & 72,000 \\\hline \text { Irvventory } & 60,000 & \text { Corrmon stock } & 100,000 \\\hline \text { Equiprnent } & 150,000 & \text { Retaired earnings } & 49,000 \\\hline \text { Total assets } & \$ 285,000 & \text { Total liabilities and equity } & \$ 285,000 \\\hline\end{array}$$
Calculate the corporation's current ratio and its acid-test ratio.

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Definitions:

Standard Deviation

A statistical measure that quantifies the dispersion or variability of a set of numerical data from its mean, indicating how spread out the data points are.

Measure of Variability

A statistical indicator that describes the degree to which scores in a dataset are spread out or dispersed.

Inclusive Range

A measure of variability calculated by subtracting the lowest score in a distribution from the highest score in the distribution and adding 1.

Variables

Elements, features, or factors that can change or vary in an experiment or study, potentially influencing the outcome.