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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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