Computing contribution margin and current ratio


Q1) Based on information given below compute current ratio.  Illustrate all work

Cash........................................... $1,000

Marketable Securities.................. $20,000

Equipment.................................... $30,000

Accounts Payable........................ $7,000

Common Stock.............................. $5,000

Q2) Compute contribution margin based on information given below. Make sure to show all work

Total Revenue................................. $70,000

Total variable costs..........................$10,000

Total fixed costs..............................$50,000

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Accounting Basics: Computing contribution margin and current ratio
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