Current Position AnalysisThe following data were taken from the balance sheet ofNilo Company at the end of two recent fiscal years:Current assets:CashMarketable securitiesAccounts and notes receivable (net)InventoriesPrepaid expensesTotal current assetsCurrent liabilities:Accounts and notes payable (short-term)Accrued liabilitiesTotal current liabilities1. Working capital2. Current ratioCurrent Year Previous Year3. Quick ratio$391,000515,000634,000368,000182,000$2,090,000$725,000275,000$1,000,000a. Determine for each year (1) the working capital, (2) thecurrent ratio, and (3) the quick ratio. Round ratios to onedecimal place.Current Year$300,000354,000426,000222,000138,000$1,440,000$600,000300,000$900,000LAPrevious Year

Current assets are those type of assets which are either in cash or can be converted into cash into…

Current Position Analysis The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current assets: Cash Marketable securities Accounts and notes receivable (net) Inventories Prepaid expenses Total current assets Current liabilities: Accounts and notes payable (short-term) Accrued liabilities Total current liabilities Current Year Previous Year 1. Working capital 2. Current ratio 3. Quick ratio $391,000 515,000 634,000 368,000 182,000 $2,090,000 $725,000 275,000 $1,000,000 $300,000 354,000 426,000 222,000 138,000 $1,440,000 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 $600,000 300,000 $900,000 Previous Year

Current Position Analysis The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current assets: Cash Marketable securities Accounts and notes receivable (net) Inventories Prepaid expenses Total current assets Current liabilities: Accounts and notes payable (short-term) Accrued liabilities Total current liabilities Current Year Previous Year 1. Working capital 2. Current ratio 3. Quick ratio $391,000 515,000 634,000 368,000 182,000 $2,090,000 $725,000 275,000 $1,000,000 $300,000 354,000 426,000 222,000 138,000 $1,440,000 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 $600,000 300,000 $900,000 Previous Year

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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