Calculate the current ratio and acid test ratio

Assignment Help Accounting Basics
Reference no: EM132234172

Question - The following data pertain to Charlie Company for the year ended December 31,2018:

Accounts payable 35,000

Accounts receivable 70,000

Accrued liabilities 25,000

Cash 85,000

Inventory 45,000

Net sales 250,000

Note payable (due in 2019) 40,000

Profit 37,500

Trading securities 50,000

Total assets 400,000

Total liabilities 160,000

Required: Calculate the following ratios:

A. Current Ratio

B. Acid test ratio

C. Debt ratio

D. Return on sales.

Reference no: EM132234172

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