FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Current Position Analysis
The following data were taken from the
| Current Year | Previous Year | |||||
| Current assets: | ||||||
| Cash | $620,200 | $495,600 | ||||
| Marketable securities | 718,100 | 557,600 | ||||
| Accounts and notes receivable (net) | 293,700 | 185,800 | ||||
| Inventories | 314,200 | 179,900 | ||||
| Prepaid expenses | 161,800 | 115,100 | ||||
| Total current assets | $2,108,000 | $1,534,000 | ||||
| Current liabilities: | ||||||
| Accounts and notes payable | ||||||
| (short-term) | $394,400 | $413,000 | ||||
| Accrued liabilities | 285,600 | 177,000 | ||||
| Total current liabilities | $680,000 | $590,000 |
a. Determine for each year (1) the
| Current Year | Previous Year | |||||
| 1. Working capital | $fill in the blank 1 | $fill in the blank 2 | ||||
| 2. Current ratio | fill in the blank 3 | fill in the blank 4 | ||||
| 3. Quick ratio | fill in the blank 5 | fill in the blank 6 |
b. The liquidity of Albertini has
from the preceding year to the current year. The working capital, current ratio, and quick ratio have all
. Most of these changes are the result of an
in current assets relative to current liabilities.
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