calculating the current ratio of the XYZ nonprofit corporation balance sheet using appendix b.
We don't have access to Appendix b.
Please note that the Jiskha Forum has no connection with Axia college or any other school.
Come back in a few weeks to see if any Axia student has helped you with this question.
To calculate the current ratio of XYZ nonprofit corporation, you will need to refer to Appendix B, which should have the information on the balance sheet. The current ratio can be calculated using the following formula:
Current Ratio = Current Assets / Current Liabilities
Step 1: Find the current assets on the balance sheet in Appendix B. This includes assets that are expected to be converted into cash or used up within one year, such as cash, accounts receivable, and inventory.
Step 2: Find the current liabilities. These are the liabilities that are due within one year, such as accounts payable and short-term debt.
Step 3: Calculate the current ratio by dividing the total current assets by the total current liabilities:
Current Ratio = Total Current Assets / Total Current Liabilities
Make sure to use the values from Appendix B to get the accurate current ratio.
To calculate the current ratio of XYZ nonprofit corporation using Appendix B, you need to locate the necessary information from this document. Appendix B typically contains the balance sheet components required for ratio analysis.
The current ratio measures a company's ability to cover its short-term liabilities with its short-term assets. It is calculated by dividing current assets by current liabilities. Here's how you can calculate the current ratio step by step:
Step 1: Find the balance sheet section in Appendix B. Look for the specific line items pertaining to current assets and current liabilities.
Step 2: Locate the value for current assets. This typically includes cash, accounts receivable, inventory, and other assets that the company expects to convert into cash within the next year.
Step 3: Identify the value for current liabilities. This encompasses obligations that must be settled within the next year, such as accounts payable, accrued expenses, and short-term debt.
Step 4: Once you have both the current assets and current liabilities values, divide the total current assets by the total current liabilities. The formula for calculating the current ratio is:
Current Ratio = Current Assets / Current Liabilities
Step 5: Substitute the values you found in Appendix B into the formula. Use the provided amounts for current assets and current liabilities to perform the calculation.
By following these steps and locating the relevant information in Appendix B, you will be able to calculate the current ratio of XYZ nonprofit corporation using their balance sheet data.