After reporting a profit of $20,000 for the year, a certain company reported the following items on its balance sheet:
A)Calculate the current ratio and determine the amount of working capital.
B)Beyond the information provided in your answers to "A," what does the composition of the current assets tell you about the company's liquidity?
C)What other information would one need to fully access liquidity?

Question

After reporting a profit of $20,000 for the year, a certain company reported the following items on its balance sheet:   
A)Calculate the current ratio and determine the amount of working capital. 
B)Beyond the information provided in your answers to "A," what does the composition of the current assets tell you about the company's liquidity? 
C)What other information would one need to fully access liquidity?

Quizplus · Accepted Answer

The Answer of After reporting a profit of $20,000 for the year, a certain company reported the following items on its balance sheet:   
A)Calculate the current ratio and determine the amount of working capital. 
B)Beyond the information provided in your answers to "A," what does the composition of the current assets tell you about the company's liquidity? 
C)What other information would one need to fully access liquidity?

After Reporting a Profit of $20,000 for the Year, a Certain