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PLZ HELP WITH ACCOUNTING?
JM COMPANY
Balance Sheet (partial)
2009 2008
Current assets
Cash and cash equivalents $2,088 $1,214
Accounts receivable, net 3,365 3,443
Inventories 3,519 2,847
Other current assets 2,765
1,583
Total current assets $11,737
$9,087
Current liabilities $7,711
$5,986
(a) Calculate the current ratio for JM for 2009 and 2008. (Round all ratios to 2 decimal places, e.g. 5.25.)
) Suppose that at the end of 2009 JM management used $312 million cash to pay off $312 million of accounts payable. What would the new current ratio be?
: 1
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the first set of numbers go with 2009 and the second set go with 2008. the ratios for part (A) is 1.52:1. I really need help ith part (B).
1 Answer
- ?Lv 79 years agoFavorite Answer
B)
In this scenario, current assets would decrease by 312 (million) to 11,425 , and current liabilities would decrease by 312 (million) to 7,399 .
current ratio = ( 11,425 / 7,399 ) = 1.54:1
