Respuesta :
Answer:
The ending balance in inventories is $ 23500 and total current liability is $ 47000
Explanation:
Given:
Cash included in company's balance sheet, C = $ 37000
Accounts receivables, AR = $ 57000
Current ratio = 2.5
Acid-test ratio = 2.0
Now,
The current ratio is given as:
Current ratio = (C + AR + inventory) / current liabilities
thus,
on substituting the values, we get
2.5 = ($ 37000 + $ 57000 + inventory) / current liabilities
let the inventory be 'i'
and the current liability be 'L'
2.5 = (94000 + i) / L
or
2.5L - $ 94000 = i ...............(1)
also,
Acid-test ratio is given as:
Acid-test ratio = (C + AR) / current liabilities
on substituting the values, we get
2.0 = ($ 37000 + $ 57000) / current liabilities
or
2.0 = $ 94000 / L
or
L = $ 47000
Substituting the value of current liability in equation (1), we have
i = 2.5 × $ 47000 - $ 94000
or
i = $ 23500
Hence,
the ending balance in inventories is $ 23500 and total current liability is $ 47000
The current liabilities mean all the liabilities which are settled into cash within the operating cycle of the firm.
The closing balance in inventories would be $23,500 and the total current liability would be $47000.
What are the current liabilities?
Current liabilities are a short-term financial obligation of any company that is callable within one year or within a normal operating cycle.
Examples:
Accounts payable, short-term debt, dividends, notes payable, etc., are all examples of current liabilities.
Computation of inventories and current liabilities:
Given that,
Cash included in company's(C) balance sheet = $37,000,
Accounts Receivables(AR) = $57,000,
Current Ratio(CR) = 2.5,
Acid-test Ratio(ATR) = 2.0.
Now,
By putting the values in the formula of ACR, we get
[tex]\text{ATR} = \dfrac{\text{(C + AR)} }{\text{current liabilities}}\\\\\\2.0 = \dfrac{(\$37,000+\$57,000)}{\text{Current Liabilities}}\\\\\\\text{Current Liabilities} = \$47,000[/tex]
Now, put the given values and the value of the current liabilities in the formula of CR, we get
Current Ratio(CR):
[tex]\text{CR} = \dfrac{\text{(C + AR + inventory) }}{\text{Current Liabilities}}\\\\\\2.5 = \dfrac{ (\$37,000 + \$57,000 + \text{Inventory})}{\text{\$47,000}}\\\\\\ \text{Inventory}=2.5\times \text{\$47,000}- \$94,000\\\\\\ \text{Inventory}=\$23,500[/tex]
Therefore, The ending balance in inventories is $23,500 and the total current liability is $47,000.
Learn more about current liabilities, refer to:
https://brainly.com/question/13388204
