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 $383,000 $302,400 Marketable securities 443,500 340,200 Accounts and notes receivable (net) 181,500 113,400 Inventories 792,000 614,900 Prepaid expenses 408,000 393,100 Total current assets $2,208,000 $1,764,000 Current liabilities: Accounts and notes payable (short-term) $278,400 $294,000 Accrued liabilities 201,600 126,000 Total current liabilities $480,000 $420,000 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 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 $383,000 $302,400 Marketable securities 443,500 340,200 Accounts and notes receivable (net) 181,500 113,400 Inventories 792,000 614,900 Prepaid expenses 408,000 393,100 Total current assets $2,208,000 $1,764,000 Current liabilities: Accounts and notes payable (short-term) $278,400 $294,000 Accrued liabilities 201,600 126,000 Total current liabilities $480,000 $420,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
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
Current Year | Previous Year | |||||
Current assets: | ||||||
Cash | $383,000 | $302,400 | ||||
Marketable securities | 443,500 | 340,200 | ||||
Accounts and notes receivable (net) | 181,500 | 113,400 | ||||
Inventories | 792,000 | 614,900 | ||||
Prepaid expenses | 408,000 | 393,100 | ||||
Total current assets | $2,208,000 | $1,764,000 | ||||
Current liabilities: | ||||||
Accounts and notes payable | ||||||
(short-term) | $278,400 | $294,000 | ||||
Accrued liabilities | 201,600 | 126,000 | ||||
Total current liabilities | $480,000 | $420,000 |
a. Determine for each year (1) the
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