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a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. R

a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. R

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Current Position Analysis The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years: Current assets: Current Year Previous Year Cash $324,500 $254,400 Marketable securities 375,800 286,200 Accounts and notes receivable (net) 153,700 95,400 Inventories 885,700 646,600 Prepaid expenses 456,300 413,400 Total current assets $2,196,000 $1,696,000 Current liabilities: Accounts and notes payable (short-term) Accrued liabilities Total current liabilities $353,800 $371,000 256,200 $610,000 159,000 $530,000 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 Year Previous Year 1. Working capital 2. Current ratio 3. Quick ratio
Transcribed Image Text:Current Position Analysis The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years: Current assets: Current Year Previous Year Cash $324,500 $254,400 Marketable securities 375,800 286,200 Accounts and notes receivable (net) 153,700 95,400 Inventories 885,700 646,600 Prepaid expenses 456,300 413,400 Total current assets $2,196,000 $1,696,000 Current liabilities: Accounts and notes payable (short-term) Accrued liabilities Total current liabilities $353,800 $371,000 256,200 $610,000 159,000 $530,000 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 Year Previous Year 1. Working capital 2. Current ratio 3. Quick ratio
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