FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Current position analysis
The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years:
Current assets:
Cash
Current Year
Previous Year
$397,100
$326,400
Marketable securities
459,800
367,200
Accounts and notes receivable (net)
188,100
122,400
Inventories
1,052,700
702,700
Prepaid expenses
542,300
449,300
Total current assets
$2,640,000
$1,968,000
Current liabilities:
Accounts and notes payable (short-term)
$319,000
$336,000
Accrued liabilities
Total current liabilities
231,000
$550,000
144,000
$480,000
a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
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Transcribed Image Text:Current position analysis The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current assets: Cash Current Year Previous Year $397,100 $326,400 Marketable securities 459,800 367,200 Accounts and notes receivable (net) 188,100 122,400 Inventories 1,052,700 702,700 Prepaid expenses 542,300 449,300 Total current assets $2,640,000 $1,968,000 Current liabilities: Accounts and notes payable (short-term) $319,000 $336,000 Accrued liabilities Total current liabilities 231,000 $550,000 144,000 $480,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
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