The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash Marketable securities Accounts and notes receivable (net) Inventories Prepaid expenses Total current assets Current liabilities: Accounts and notes payable (short-term) Accrued liabilities $458,200 $483,000 331,800 $790,000 207,000 $690,000 Total current liabilities a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current Year Previous Year 1. Working capital $ 2. Current ratio $690,500 799,500 327,000 1,042,800 537,200 $3,397,000 3. Quick ratio b. The liquidity of Nilo has current assets relative to current liabilities. $579,600 652,100 217,300 673,400 430,600 $2,553,000 from the preceding year to the current year. The working capital, current ratio, and quick ratio have all i Most of these changes are the result of an [ in
The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash Marketable securities Accounts and notes receivable (net) Inventories Prepaid expenses Total current assets Current liabilities: Accounts and notes payable (short-term) Accrued liabilities $458,200 $483,000 331,800 $790,000 207,000 $690,000 Total current liabilities a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current Year Previous Year 1. Working capital $ 2. Current ratio $690,500 799,500 327,000 1,042,800 537,200 $3,397,000 3. Quick ratio b. The liquidity of Nilo has current assets relative to current liabilities. $579,600 652,100 217,300 673,400 430,600 $2,553,000 from the preceding year to the current year. The working capital, current ratio, and quick ratio have all i Most of these changes are the result of an [ in
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 10CDQ
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