Accounting Accounting Practice Problems Solutions Library

Ratios: Working Capital and the Current Ratio Solutions Library

Access 13 Ratios: Working Capital and the Current Ratio video and text solutions to help you complete your homework. Need to revisit the concept? Watch our Ratios: Working Capital and the Current Ratio learn videos.

Browse Solutions

13 solutions

Ratios: Working Capital and the Current Ratio

Q. Charity Kemper analyzes a company's current ratio before deciding whether to invest in the company. What types of information does Charity hope to ...

Solved • Nov 22, 2017

Ratios: Working Capital and the Current Ratio

Q. What was Eric's working capital as of 12/31/12? a. $9,410 b. $12,360 c. $9,160 d. $11,160

Solved • Nov 17, 2017

Ratios: Working Capital and the Current Ratio

Q. A company has a current ratio of 2.4 before purchasing a piece of equipment with cash. Following this payment the current ratio will be: a. less t...

Solved • Nov 16, 2017

Ratios: Working Capital and the Current Ratio

Q. Current assets are $400,000 of the total assets of $1,000,000. Current liabilities are $200,000 of the total liabilities of $700,000. What is the c...

Solved • Aug 1, 2017

Ratios: Working Capital and the Current Ratio

Q. Which of the following accounts would be part of working capital? A. accounts payable B. land C. supplies D. retained earnings E. cost of good...

Solved • Jul 28, 2017

Ratios: Working Capital and the Current Ratio

Q. All other things being equal, which of the following would  decrease the current ratio? a. A fixed asset is sold for more than book value. b. The...

Solved • Jul 24, 2017

Ratios: Working Capital and the Current Ratio

Q. Sheffield's Furniture has $1,386,500 in current assets and $635,000 in current liabilities.  Its initial inventory level is $460,000, and it will r...

Solved • Jul 24, 2017

Ratios: Working Capital and the Current Ratio

Q. All other things being equal, which of the following would decrease the current ratio? a. Equipment is purchased with short-term notes. b. A fixe...

Solved • Jul 24, 2017

Ratios: Working Capital and the Current Ratio

Q. Sheffield's Furniture has $1,292,000 in current assets and $580,000 in current liabilities.  Its initial inventory level is $620,000, and it will r...

Solved • Jul 24, 2017

Ratios: Working Capital and the Current Ratio

Q. From a liquidity standpoint, it is more desirable for a company to have current a. assets equal current liabilities. b. liabilities exceed curren...

Solved • Jul 18, 2017

Ratios: Working Capital and the Current Ratio

Q. The current ratio is a. calculated by dividing current liabilities by current assets. b. used to evaluate a company's liquidity and short-term de...

Solved • Jul 17, 2017

Ratios: Working Capital and the Current Ratio

Q. What is the current ratio for this company? a. 1.42 b. 0.80 c. 1.16 d. 0.60

Solved • Jul 17, 2017

Ratios: Working Capital and the Current Ratio

Q. Listed below are the account balances of the Frank Corporation on December 31, 2014. What is Frank’s current ratio: A. 1.077. B. 0.929. C. 1.19...

Solved • Jul 14, 2017