Problem 5. NGIWI Inc. has shown the following details as of yearend: AR P 200 000 Interest payable in 3 mos. 25 000 AP 80 000 Inventory 440 000 Bonds payable due in 10 yrs. 500 000 Land 800 000 Cash...


Problem 5. NGIWI Inc. has shown the following details as of yearend:<br>AR<br>P<br>200 000<br>Interest payable in 3 mos.<br>25 000<br>AP<br>80 000<br>Inventory<br>440 000<br>Bonds payable due in 10 yrs.<br>500 000<br>Land<br>800 000<br>Cash<br>100 000<br>Notes payable due in 6 mos.<br>250 000<br>NGIWI Inc. will use cash to pay 50% of the accounts payable.<br>What will happen to the current ratio and the acid test/quick ratio? (Just indicate INCR/DECR)<br>

Extracted text: Problem 5. NGIWI Inc. has shown the following details as of yearend: AR P 200 000 Interest payable in 3 mos. 25 000 AP 80 000 Inventory 440 000 Bonds payable due in 10 yrs. 500 000 Land 800 000 Cash 100 000 Notes payable due in 6 mos. 250 000 NGIWI Inc. will use cash to pay 50% of the accounts payable. What will happen to the current ratio and the acid test/quick ratio? (Just indicate INCR/DECR)

Jun 03, 2022
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