In the first quarter of the year (January through March), a ...

[ETearle]

In the first quarter of the year (January through March), a commission merchant sold several consignments of construction equipment, some used and some new. The sales price was 112,900 for the new equipment and 58,400 for the used equipment. The merchant charges commission rates of 10 to sell new equipment and 15 to sell used equipment. The merchant paid total freight charges of 2,490 to have the equipment delivered to the various buyers. Compute the net proceeds from the sales.

Question 2

Forman and Brasso Furniture Company had cash of 182,400 . accounts receivable of 126,200 . and current liabilities of 295,400 . Compute the acid test ratio.

[juliaf]

Answer to Question 1

112,900 + 58,400 = 171,300 . 112,900  0.10 = 11,290;
58,400  0.15 = 8,760; 11,290 + 8,760 + 2,490 = 22,540;
171,300 - 22,540 = 148,760

Answer to Question 2

1.04:1