Current position analysisThe following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years:Current Year Previous YearCurrent assets:Cash$368,200$281,600Marketable securities126,400316,000Accounts and notes receivable (net)174,400105,600Inventories639,500402,600Prepaid expenses129,500257,400Total current$1,930,000$1,364,000Current liabilities:Accounts and notes payable (short-term)$295,000$300,000Accrued labiesTotal current liabilities214,200$510,000132,000$640,000a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.1. Working capital2. Current ratio3. Quick ratiob. The quidity of Nilo hasresult of anCurrent YearPrevious Yearfrom the preceding year to the current year. The working capital, current ratio, and quick ratio have allMost of these changes are thein current assets relative to current liabilities.

CURRENT RATIO QUICK RATIO FINAL ANSWER B)

Answered: Current position analysis The following…

FINANCIAL ACCOUNTING

10th Edition

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Author:Libby

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Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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The following items are reported on a company's balance sheet: Cash $579,700 Marketable securities 452,900 Accounts receivable (net) 520,200 Inventory 258,800 Accounts payable 647,000 Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place. a. Current ratio b. Quick ratio
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Working Capital and Short Term Liquidity RatiosBell Company has a current ratio of 2.85 on December 31. On that date the company's current assets are as follows: Cash $16,400 Short-term investments 49,000 Accounts receivable (net) 169,000 Inventory 200,000 Prepaid expenses 11,600 Current assets $446,000 Bell Company's current liabilities at the beginning of the year were $137,000 and during the year its operating activities provided a cash flow of $55,000.a. What are the firm's current liabilities on December 31?Round answer to the nearest whole number.Answerb. What is the firm's working capital on December 31?Round answer to the nearest whole number.Answerc. What is the quick ratio on December 31? Round answer to 2 decimal places.Answerd. What is the Bell's operating-cash-flow-to-current-liabilities ratio? Round answer to 2 decimal places.Answer PreviousSave AnswersNext
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