Ask Question
3 April, 02:05

Liquidity Ratios You have the following information on Marco's Polo Shop: total liabilities and equity = $212 million; current liabilities = $52 million, inventory = $67 million, and quick ratio = 2.5 times. Using this information, what is the balance for fixed assets on Marco Polo's balance sheet?

+2
Answers (1)
  1. 3 April, 03:04
    0
    Fixed assets = $15,000,000

    Explanation:

    Quick ratio = (Current assets - Inventory) : Current liabilities

    2.5 = (Current assets - $67,000,000) : $52,000,000

    $130,000,000 = Current assets - $67,000,000

    Current assets = $197,000,000

    Total assets = Total liabilities and equity

    Total assets = Current assets + Fixed assets

    $212,000,000 = $197,000,000 + Fixed assets

    Fixed assets = $15,000,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Liquidity Ratios You have the following information on Marco's Polo Shop: total liabilities and equity = $212 million; current liabilities ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers