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Effects of transactions on liquidity measures

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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 ...

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Response provides guidance on the effects of transactions on liquidity measures

$2.19