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Author Question: Henderson's Appliance Store had net income of 202,000 this year with owner's equity of 325,000. What ... (Read 94 times)

misspop

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on: Jun 24, 2018
Henderson's Appliance Store had net income of 202,000 this year with owner's equity of 325,000. What is the return on investment for the year?

Question 2

Burke's Office Supply has cash assets of 82,000 and accounts receivable of 94,000. Their accounts payable total 55,000. What is the acid test ratio?


aburgess

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Reply #1 on: Jun 24, 2018
Answer to Question 1

62.2;
202,000  325,000 = 0.6215 = 62.2

Answer to Question 2

3.2:1;
(82,000 + 94,000 )  55,000 = 176,000  55,000 = 3.2
The acid test ratio is 3.2:1.


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