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 p. The liquidity of Nilo 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.
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 p. The liquidity of Nilo 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![cator%=&inprogress%3Dfalse
The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
$433,200
$332,800
Marketable securities
501,600
374,400
Accounts and notes receivable (net)
205,200
124,800
Inventories
594,000
380,600
Prepaid expenses
306,000
243,400
Total current assets
$2,040,000
$1,456,000
Current liabilities:
Accounts and notes payable
(short-term)
$348,000
$364,000
Accrued liabilities
252,000
156,000
Total current liabilities
$600,000
$520,000
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
b. The liquidity of Nilo 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1d1c5be9-aea8-4329-a082-163277ee4f1f%2F089233df-90df-408d-a6c9-f94621d6a3e8%2F9s8ud7i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:cator%=&inprogress%3Dfalse
The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
$433,200
$332,800
Marketable securities
501,600
374,400
Accounts and notes receivable (net)
205,200
124,800
Inventories
594,000
380,600
Prepaid expenses
306,000
243,400
Total current assets
$2,040,000
$1,456,000
Current liabilities:
Accounts and notes payable
(short-term)
$348,000
$364,000
Accrued liabilities
252,000
156,000
Total current liabilities
$600,000
$520,000
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
b. The liquidity of Nilo 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.
![Current Position Analysis
The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
$433,200
$332,800
Marketable securities
501,600
374,400
Accounts and notes receivable (net)
205,200
124,800
Inventories
594,000
380,600
Prepaid expenses
306,000
243,400
Total current assets
$2,040,000
$1,456,000
Current liabilities:
Accounts and notes payable
(short-term)
$348,000
$364,000
Accrued liabilities
252,000
156,000
Total current liabilities
$600,000
$520,000
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
$4
2. Current ratio
3. Quick ratio](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1d1c5be9-aea8-4329-a082-163277ee4f1f%2F089233df-90df-408d-a6c9-f94621d6a3e8%2Fqw1nx7o_processed.jpeg&w=3840&q=75)
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 Year
Previous Year
Current assets:
Cash
$433,200
$332,800
Marketable securities
501,600
374,400
Accounts and notes receivable (net)
205,200
124,800
Inventories
594,000
380,600
Prepaid expenses
306,000
243,400
Total current assets
$2,040,000
$1,456,000
Current liabilities:
Accounts and notes payable
(short-term)
$348,000
$364,000
Accrued liabilities
252,000
156,000
Total current liabilities
$600,000
$520,000
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
$4
2. Current ratio
3. Quick ratio
Expert Solution
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Step 1
Working Capital=Current Assets-Current Liabilities
Current Ratio=Current Assets/Current Liabilities
Quick Ratio=(Current Assets-Inventory)/Current Liabilities
.
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