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

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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