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Calculate the working capital and current ratio

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Reference no: EM132480758

Question - The following data are taken from the financial statements of Keanan Company as at the end of the year 2021. The data are in alphabetical order.

Accounts Payable

$28,000

Profit

48,000

Accounts Receivable

66,000

Supplies

8,600

Cash

54,000

Total assets

250,000

Other current liabilities

17,000

Total liabilities

200,000

Prepaid Insurance

2,000

Wages payable

5,000

Instructions -

a) Calculate the working capital, current ratio, and acid-test ratio.

b) Explain what additional information you would require in order to use the three measures to evaluate Keanan's liquidity.

Reference no: EM132480758

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