Working Capital and Current Ratio Current assets and current liabilities for Sandstone Company follow: 20Y8 Current assets Current liabilities 20Y9 $2,133,800 940,000 $1,613,300 730,000 a. Determine the working capital and current ratio for 2019 and 2018. If required, round "current ratio" answers to two decimal places. 20Y9 20Y8 Working capital Current ratio b. Is the change in the current ratio from 2018 to 2019 favorable or unfavorable? Favorable -✓

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Working Capital and Current Ratio
Current assets and current liabilities for Sandstone Company follow:
20Y9
20Y8
$2,133,800
$1,613,300
940,000
730,000
a. Determine the working capital and current ratio for 2019 and 2018. If required, round "current ratio" answers to two decimal places.
20Y9
20Y8
Current assets
Current liabilities
Working capital
Current ratio
b. Is the change in the current ratio from 2018 to 2019 favorable or unfavorable?
Favorable
Transcribed Image Text:Working Capital and Current Ratio Current assets and current liabilities for Sandstone Company follow: 20Y9 20Y8 $2,133,800 $1,613,300 940,000 730,000 a. Determine the working capital and current ratio for 2019 and 2018. If required, round "current ratio" answers to two decimal places. 20Y9 20Y8 Current assets Current liabilities Working capital Current ratio b. Is the change in the current ratio from 2018 to 2019 favorable or unfavorable? Favorable
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