Analyze S&J Plumbing, Inc.'s balance sheet below: Assets Liabilities Cash $100 Notes Payable-bank $200 Net Account Receivable $400 Account Payable $300 Inventory $200 Accrued Expenses $100 Total Current Assets $700 Total Current...

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Finance

Analyze S&J Plumbing, Inc.'s balance sheet below:
Assets
Liabilities
Cash
$100
Notes Payable-bank
$200
Net Account Receivable
$400
Account Payable
$300
Inventory
$200
Accrued Expenses
$100
Total Current Assets
$700
Total Current Liabilities
$600
Calculate the following:
Current ratio
Quick ratio
Net working capital
Write a report of 2-3 pages that discusses the liquidity of S& J Plumbing Incorporated.

Answer & Explanation Solved by verified expert

4.2 Ratings (648 Votes)

Current ratio and quick ratio is calculated to analyse the liquidity capacity of the corporate SJ Plumbing Incs has short term and long term obligations These ratio are calculate to measure the ability of firm to meet the short term financial obligations Current ratio Current assets See Answer

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Assets		Liabilities
Cash	$100	Notes Payable-bank	$200
Net Account Receivable	$400	Account Payable	$300
Inventory	$200	Accrued Expenses	$100
Total Current Assets	$700	Total Current Liabilities	$600