Question

Gorror Effect of Transactions on Current Position Analysis Data pertaining to the current position of Lucroy Industries Inc. are as follows: Cash $800,000 Marketable securities 550,000 Accounts and notes 850,000 receivable (net) Inventories 700,000 Prepaid expenses 300,000 Accounts payable 1,200,000 Notes payable (short- 700,000 term) Accrued expenses 100,000 Required: 1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios to one decimal place. a. Working capital $ 1,200,00 b. Current ratio c. Quick ratio

Answer 1

the swift ratio To one decimal place, round ratios. Purchasing power $ 1,200,00 Rate of change quick ratio

what  is Good fast ratio?

The quick ratio is something to consider, and often the higher it really is, the better. You should strive for just a ratio that really is greater or comparable to one as a business. The ratio of one or higher indicates that your business has enough fluid assets to cover its immediate obligations.

What does the quick ratio reveal?

The Quick Ratio, commonly referred as the Hydrochloric or Liquid ratio, assesses a company's capacity to meet its short-term obligations by looking at its assets' ease of conversion into cash. These assets are money in the bank, marketable securities, and receivables.

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