A company reports the following balances at year-end: Assets…

A company reports the following balances at year-end: Assets Cash: $35,000 Short-term investments (trading securities): $25,000 Accounts receivable, net: $40,000 Inventory: $60,000 Prepaid insurance: $10,000 Liabilities Accounts payable: $25,000 Short-term notes payable: $35,000 Unearned revenue: $20,000 Long-term debt (due in 5 years): $50,000 What is the company’s quick ratio?

A company exchanges equipment with an original cost of $90,0…

A company exchanges equipment with an original cost of $90,000 and accumulated depreciation of $50,000 for similar equipment. The fair value of the old equipment is $48,000, and the company pays $7,000 in cash to complete the exchange. The exchange has commercial substance. At what amount should the new equipment be recorded?