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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 Year   Previous Year Current assets:             Cash $486,400     $392,000     Marketable securities 563,200     441,000     Accounts and notes receivable (net) 230,400     147,000     Inventories 792,000     469,700     Prepaid expenses 408,000     300,300       Total current assets $2,480,000     $1,750,000   Current liabilities:             Accounts and notes payable           (short-term) $464,000     $490,000     Accrued liabilities 336,000     210,000       Total current liabilities $800,000     $700,000   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 $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.               Check My Work

Current Position Analysis The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years:   Current Year   Previous Year Current assets:             Cash $486,400     $392,000     Marketable securities 563,200     441,000     Accounts and notes receivable (net) 230,400     147,000     Inventories 792,000     469,700     Prepaid expenses 408,000     300,300       Total current assets $2,480,000     $1,750,000   Current liabilities:             Accounts and notes payable           (short-term) $464,000     $490,000     Accrued liabilities 336,000     210,000       Total current liabilities $800,000     $700,000   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 $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.               Check My Work

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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  1. Current Position Analysis

    The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years:

      Current Year   Previous Year
    Current assets:          
      Cash $486,400     $392,000  
      Marketable securities 563,200     441,000  
      Accounts and notes receivable (net) 230,400     147,000  
      Inventories 792,000     469,700  
      Prepaid expenses 408,000     300,300  
        Total current assets $2,480,000     $1,750,000  
    Current liabilities:          
      Accounts and notes payable      
        (short-term) $464,000     $490,000  
      Accrued liabilities 336,000     210,000  
        Total current liabilities $800,000     $700,000  

    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 $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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