TB Problem Qu. 17-219 (Algo) Analyzing liquidity
Year-end balance sheets follow.
At December 31
Current Year
1 Year Ago
2 Years Ago
Assets
Cash
$ 31,082
$ 37,052
$ 37,472
Accounts receivable, net
90,086
63,582
49,962
Supplies
112,145
84,019
52,672
Prepaid insurance
10,109
9,443
4,080
Buildings, net
278,181
255,562
234,314
Total assets
$ 521,603
$ 449,658
378,500
Liabilities and Equity
Accounts payable
$ 129,879
$ 75,232
$ 48,963
Long-term notes payable
99,042
101,353
83,649
Common stock
162,500
163,500
163,500
Retained earnings
130,182
109,573
82,388
Total liabilities and equity
$ 521,603
$ 449,658
$ 378,500
Complete this question by entering your answers in the tabs below.
Requirement Requirement Requirement Requirement
1A
1B
2A
2B
Compute the acid-test ratio for each of the three years.
Acid-test ratio
Choose Numerator:
Choose
Denominator:
=
Acid-test ratio
Current Year
+
+
/
=
0 to 1
1 Year Ago
+
+
/
=
0 to 1
2 Years Ago
+
+
/
=
0 to 1
< Requirement 1A
Requirement 1B >