Heart of Tennessee Telecom has these account balances at December 31, 2016:
Note payabl...
Heart of Tennessee Telecom has these account balances at December 31, 2016:
Note payable, long-term $7800
Prepaid rent 2300
Salary payable 3000
Service revenue 29,400
Supplies 500
Accounts payable $3700
Accounts receivable 5700
Cash 3500
Depreciation expense 6000
Equipment 15,000
Requirements
a. Calculate Heart of Tennessee Telecom's current ratio.
b. How much in current assets does Heart of Tennessee Telecom have for every dollar of current liabilities that it owes?
Answers: 3
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