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    Acid-test ratio

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    The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below:

    Current Assets
    Cash - $60
    Accounts receivable (net) - 170
    Notes receivable - 50
    Inventories - 200
    Prepaid expenses - 25
    Total current assets - 505
    Plant assets (net) - 255

    Total assets $760

    Current Liabilities
    Accounts payable - $240
    Other liabilities - 80
    Total current liabilities - 320
    Long term liabilities - 110

    Total liabilities - 430

    Shareholders' equity
    Capital Stock - 150
    Retained Earnings - 180
    Total shareholders' equity - 330

    Total liabilities and equity - 760

    What would the acid-test ratio be?

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    https://brainmass.com/business/business-math/acid-test-ratio-439989

    Solution Preview

    The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below:

    Current Assets
    Cash - $60
    Accounts receivable (net) - 170
    Notes ...

    Solution Summary

    Solution assists in estimating acid-test ratio

    $2.19

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