JRL's financial statements contain the following information: Cash $400,000 Marketable securities 115,000 Accounts receivable 800,000 Inventory 950,000 Accounts payable 575,000 Accrued expenses 180,000 Long-term debt 900,000 Cost of goods sold 1,000,000 Required: Assume the accounts payable balance is all trade payables and opening and closing balances are the same. Round your answers to two decimal places. 1. What is its current ratio? fill in the blank 1 2. What is its quick ratio? fill in the blank 2 3. What is its cash ratio? fill in the blank 3 4. What is the trade payable turnover ratio? fill in the blank 4 5. Discuss JRL's liquidity using these ratios. JRL’s current ratio depends on how liquid JRL's are. If the is slow moving, then the quick ratio may be a better indicator of liquidity. If accounts receivable may be difficult to collect, the is best indicator of liquidity.
JRL's financial statements contain the following information: Cash $400,000 Marketable securities 115,000 Accounts receivable 800,000 Inventory 950,000 Accounts payable 575,000 Accrued expenses 180,000 Long-term debt 900,000 Cost of goods sold 1,000,000 Required: Assume the accounts payable balance is all trade payables and opening and closing balances are the same. Round your answers to two decimal places. 1. What is its current ratio? fill in the blank 1 2. What is its quick ratio? fill in the blank 2 3. What is its cash ratio? fill in the blank 3 4. What is the trade payable turnover ratio? fill in the blank 4 5. Discuss JRL's liquidity using these ratios. JRL’s current ratio depends on how liquid JRL's are. If the is slow moving, then the quick ratio may be a better indicator of liquidity. If accounts receivable may be difficult to collect, the is best indicator of liquidity.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....
Related questions
Question
JRL's financial statements contain the following information:
Cash $400,000
Marketable securities 115,000
Accounts receivable 800,000
Inventory 950,000
Accounts payable 575,000
Accrued expenses 180,000
Long-term debt 900,000
Cost of goods sold 1,000,000
Required:
Assume the accounts payable balance is all trade payables and opening and closing balances are the same. Round your answers to two decimal places.
1. What is its current ratio ?
fill in the blank 1
2. What is its quick ratio?
fill in the blank 2
3. What is its cash ratio?
fill in the blank 3
4. What is the trade payable turnover ratio?
fill in the blank 4
5. Discuss JRL's liquidity using these ratios.
JRL’s current ratio depends on how liquid JRL's
are. If the
is slow moving, then the quick ratio may be a better indicator of liquidity. If accounts receivable may be difficult to collect, the
is best indicator of liquidity.
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