The 2016 balance sheet reported the following: cash, $1,490,000; prepaid expenses, $550,000;
noncurrent assets, $2,800,000; and shareholders’ equity, $2,900,000. The current ratio at the
end of the year was 2.5 and the debt to equity ratio was 1.5. The current asset section of this
company’s balance sheet consists of cash, accounts receivable, and prepaid expenses.
Required: Determine the following 2016 amounts and ratios: (Round your "The acid-test ratio"
answer to 1 decimal place.)
1. Current liabilities
2. Long-term liabilities
3. Accounts receivables
4. The acid-test ratio