Presented below is information available for marley company. current assets cash $ 4,000 short-term investments 65,000 accounts receivable 61,000 inventories 110,000 prepaid expenses 30,000 total current assets $ 270,000 total current liabilities are $100,000. the acid-test ratio for marley is:

Calculation of Acid Test Ratio:

Acid test ratio can be calculated with the help of following formula;

Acid test ratio = (Cash + Short-term investments+ Accounts receivable) / Total current liabilities

= (4000+65000+61000) / 100000

= 1.3

Hence, Acid test ratio is 1.3

(Note: We don’t consider inventories and prepaid expenses for the calculation of Acid test ratio because these assets are not quick assets.)

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1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know