help needed with this accounting hw problem?
Under Armour has the following current assets: cash, $63 million; receivables, $60 million; inventory, $54 million; and other current assets, $5 million. Under Armour has the following liabilities: accounts payable, $44 million; current portion of long-term debt, $4 million; and long-term debt, $5 million.
Calculate the current ratio and the acid-test ratio for Under Armour.
I got 182million(current assets)/53million(current liab) = 3.43 (current ratio)
123million(quick assets)/53million(current liabilities) = 2.32 (acid-test ratio)
but the hw website keeps saying this is wrong
- 1 decade agoFavorite Answer
Your current assets are correct and current liabilities should be 48.
so current ratio will be 3.792
Accordingly recalculate acid ratio.