Canadian Bacon Inc. financial statements are presented in the table below
Question: Canadian Bacon Inc. financial statements are presented…
Canadian Bacon Inc. financial statements are presented in the table below.
Based on the information in the table, calculate the firm’s acid-test ratio (quick ratio).
Round the answers to two decimal places
Balance Sheet December 31, 2010
|Cash and marketable securities||$102,000||Accounts payable||$287,000|
|Accounts receivable||$299,000||Notes payable||$61,200|
|Prepaid expenses||$10,300||Total current liabilities||$400,100|
|Total current assets||$1,039,300||Long-term debt||$415,000|
|Gross fixed assets||$1,502,000||Par value and paid-in-capital||$376,000|
|Less: accumulated depreciation||$312,000||Retained Earnings||$1,038,200|
|Net fixed assets||$1,190,000||Common Equity||1,414,200|
|Total assets||$2,229,300||Total liabilities and owner’s equity||$2,229,300|
Income statement, Year of 2010
|Net sales (all credit)||$6,387,700.00|
|Less: Cost of goods sold||$4,726,898.00|
|Selling and administrative expenses||$345,000.00|
|Earnings before taxes||$1,117,202.00|
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