Question

Current ratio of 3.4 and an acid-test ratio of 2.8. The corporation's current assets consist of cash, marketable securities, accounts receivable, and inventories. Inventory equals $18,000. Seabury Corporation's current liabilities must be_____________.

Answer 1

Answer:

$30,000

Explanation:

The computation is shown below:

As we know that

Current ratio = Current assets ÷ Current liabilities

Current assets = 3.4 × Current liabilities

Now the

Acid-test ratio = Quick assets ÷ Current liabilities

2.8 = Currents assets - inventory  ÷ Current liabilities

2.8 = 3.4 × Current liabilities - $18,000 ÷ Current liabilities

2.8 × Current liabilities = 3.4 × Current liabilities - $18,000

After solving this, the current liabilities is $30,000