 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
I'm trying to find the current ratio. I know I'm to divide current assets into liabilities, my question, am I to use current assets or total current assets (this includes plant assets) into current liabilities or total liabilites (including partner equity)?
|
||||
|
||||
|
Current ratio - total Current Assets divided by total Current Liabilities. Return on Assets - Net Income divided by Average Total Assets. Plant assets are part of Property, Plant, & Equipment, not part of current assets. Current assets are assets that have an economic life of one year or less, items that can be converted into cash within one year or one operating cycle. Examples are Cash, Inventory, Prepaid expenses, Accounts receivable, and marketable securities. |
||||
| Question Tools | Search this Question |
Add your answer here.
Check out some similar questions!
Complete the following Equations Assets 22,000=Liabilities of 7,200+owners equity of?
Determine the amount of total assets, current assets, and noncurrent assets at the end of the period, given the following data: Current liability, ending balance $50,000 Current ratio, ending 1:6:1 Owners’ equity, beginning balance $120,000 Inventory, beginning balance $ 35,000 ...
The current asset section of the balance sheet consists of cash, marketable securities, accounts receivables, and inventories. The December 31 balance sheet revealed the following: Inventories $ 840,000 Total Assets $2,800,000 Current Ratio 2.25 Acid-Test Ratio 1.2 Debt to...
James, a cash basis taxpayer, received the following compensation and fringe benefits in 2009: Salary $66,000 Disability income protection premiums 3,000 Long-term care insurance premiums 4,000 James did not receive in 2009 $6,000 of his $72,000 salary because in December 2008 his employer...
Is the patents (Intangible assest)amount added to the current assets amount on a balance sheet. Help Thanks
View more questions Search
|
