Ask Question, Ask an Expert


Ask Accounting Basics Expert

Liquidity ratios. Edison, Stagg, and Thornton have the following financial information at the close of business on July 10:

Edison Stagg Thornton
Cash $4,000 $2,500 $1,000
Short-term investments 3,000 2,500 2,000
Accounts receivable 2,000 2,500 3,000
Inventory 1,000 2,500 4,000
Prepaid expenses 800 800 800
Accounts payable 200 200 200
Notes payable: short-term 3,100 3,100 3,100
Accrued payables 300 300 300
Long-term liabilities 3,800 3,800 3,800

a. Compute the current and quick ratios for each of the three companies. (Round calculations to two decimal places.) Which firm is the most liquid? Why?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M942497

Have any Question? 

Related Questions in Accounting Basics

Problem-ccc has decided to carry and sell t-shirts with its

Problem- CCC has decided to carry and sell t-shirts with its logo printed on them. Journalize and post the following entries. You may need to create additional T accounts. Note that we will work a whole year's worth of p ...

Fundamentals of value creation in business assignment -

FUNDAMENTALS OF VALUE CREATION IN BUSINESS ASSIGNMENT - ACCOUNTING ASSIGNMENT REQUIREMENTS- The following is a list of 10 organisations/ companies, one of which will be the subject of your analysis. CODE                  ...

Assignment - journals ledger and trial balancethe following

Assignment - Journals, Ledger and Trial Balance The following transactions relates to Merlin Bruce, a sole trader, during his first month of business: Date Transaction details 01-Jan Started business by investing $25,000 ...

A are the amounts at which fixed assets are reported in the

A. Are the amounts at which fixed assets are reported in the balance sheet their approximate market values as of the balance sheet date? Discuss. B. (a) Under what conditions is the use of an accelerated depreciation met ...

Practice questionsthe following transactions have taken

Practice questions: The following transactions have taken place in a business. Enter the name of the balance sheet item(s) affected under the appropriate column and indicate whether there has been an increase or decrease ...

Research problem you are interviewing a client before

Research Problem : You are interviewing a client before preparing his tax return. He indicates that he did not list as income $96,000 received as a recovery for false imprisonment. What should you do with respect to this ...

Assignment -1analysis assignmentinterpretation and

Assignment -1: Analysis Assignment Interpretation and comparison between the two companies' ratios (reading Chapter 15 will help you prepare the commentary). The comparison of the ratios is an important part of the proje ...

Practice questionsexplain the importance of the assumptions

Practice questions: Explain the importance of the assumptions used by accountants. and describe any four.

Assignment- fraud in the accounting information systemfor

Assignment- Fraud in the Accounting Information System For this assignment, research the Internet or Strayer databases to locate a firm that was involved in a fraud and / or embezzlement case. Explain how the firm's acco ...

1-1 define marketing and outline the steps in the marketing

1-1. Define marketing and outline the steps in the marketing process. (AACSB: Written and Oral Communication) 1-2. What is marketing myopia, and how can it be avoided? (AACSB: Written and Oral Communication; Reflective T ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate