A firms balance sheet contains 3200 of cash 20000 of fixed a

A firm’s balance sheet contains $3,200 of cash, $20,000 of fixed assets, $13,800 of accounts receivable, $7,200 of accounts payable, $5,000 of inventory, and $11,000 on a revolving line of credit. Assuming that list contains all of the company’s assets and liabilities:

How much are current assets? (Show calculation)

What is the company’s quick ratio? (Show calculation)

What is the company’s book value? (Show calculation)

Solution

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Cash               3,200.00 Fixed assets             20,000.00 Accounts receivable             13,800.00 Inventory               5,000.00 Current Assets             42,000.00 Less Inventory               5,000.00 Quick Assets             37,000.00 Accounts Payable               7,200.00 revolving line of credit             11,000.00 Current liabilities             18,200.00 Quick ratio = 37000/18200                       2.03 Book Value = 42000 - 18200             23,800.00