Killua Corporation’s Statement of Financial Positions at December 31, 2021, shows the following: (check the attached photo) Determine the following: net working capital;  current ratio; and quick ratio.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Killua Corporation’s Statement of Financial Positions at December 31, 2021, shows the following: (check the attached photo)

Determine the following:

  • net working capital;
  •  current ratio; and
  • quick ratio.
Current assets
Cash
P4,000
Marketable securities
8,000
Accounts receivable
100,000
Inventories
120,000
Prepaid expenses
1,000
Total current assets
P233.000
Current liabilities
Notes payable
P5,000
Accounts payable
Accrued expenses
Income taxes payable
150,000
20,000
1,000
Total current liabilities
P176,000
Long-term liabilities
P340,000
Transcribed Image Text:Current assets Cash P4,000 Marketable securities 8,000 Accounts receivable 100,000 Inventories 120,000 Prepaid expenses 1,000 Total current assets P233.000 Current liabilities Notes payable P5,000 Accounts payable Accrued expenses Income taxes payable 150,000 20,000 1,000 Total current liabilities P176,000 Long-term liabilities P340,000
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