Explore BrainMass

Explore BrainMass

    Effects of transactions on liquidity measures

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Please see attached file.

    © BrainMass Inc. brainmass.com March 4, 2021, 9:31 pm ad1c9bdddf
    https://brainmass.com/business/financial-ratios/251820

    Attachments

    Solution Preview

    11.8
    Effects of transactions on liquidity measures
    Selected balance sheet accounts for Tibbetts Company on September 30, 2008, are as follows:
    Cash....................................................................................................... $ 32,000
    Marketable securities......................................................................... 58,000
    Accounts receivable, net.................................................................... 86,000
    Inventory.............................................................................................. 90,000
    Prepaid expenses................................................................................ 14,000
    Total current assets $ 280,000
    Accounts payable................................................................................ $ 98,000
    Other accrued liabilities..................................................................... 22,000
    Short-term debt................................................................................... 40,000
    Total current liabilities $ 160,000

    A) Calculate the working capital, current ratio, and acid-test ...

    Solution Summary

    Response provides guidance on the effects of transactions on liquidity measures

    $2.49

    ADVERTISEMENT