Current Position Analysis The following data were taken from the comparative balance sheet of Osborn Sisters Company for the years ended December 31, 20Y9 and December 31, 20Y8: Dec. 31, 20Y9 Dec. 31, 20Y8 Cash $ 150,000 $ 100,000 Temporary investments 250,000 150,000 Accounts and notes receivable (net) 500,000 400,000 Inventories 850,000 610,000 Prepaid expenses 50,000 40,000 Total current assets $1,800,000 $1,300,000 Accounts payable $ 700,000 $ 460,000 Accrued liabilities 50,000 40,000 Total current liabilities $ 750,000 $ 500,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. 20Y9 20Y8 Working capital $fill in the blank 1 $fill in the blank 2 Current ratio fill in the blank 3 fill in the blank 4 Quick ratio fill in the blank 5 fill in the blank 6
Current Position Analysis The following data were taken from the comparative balance sheet of Osborn Sisters Company for the years ended December 31, 20Y9 and December 31, 20Y8: Dec. 31, 20Y9 Dec. 31, 20Y8 Cash $ 150,000 $ 100,000 Temporary investments 250,000 150,000 Accounts and notes receivable (net) 500,000 400,000 Inventories 850,000 610,000 Prepaid expenses 50,000 40,000 Total current assets $1,800,000 $1,300,000 Accounts payable $ 700,000 $ 460,000 Accrued liabilities 50,000 40,000 Total current liabilities $ 750,000 $ 500,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. 20Y9 20Y8 Working capital $fill in the blank 1 $fill in the blank 2 Current ratio fill in the blank 3 fill in the blank 4 Quick ratio fill in the blank 5 fill in the blank 6
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 comparative balance sheet of Osborn Sisters Company for the years ended December 31, 20Y9 and December 31, 20Y8:
| Dec. 31, 20Y9 | Dec. 31, 20Y8 | |||||
| Cash | $ 150,000 | $ 100,000 | ||||
| Temporary investments | 250,000 | 150,000 | ||||
| Accounts and notes receivable (net) | 500,000 | 400,000 | ||||
| Inventories | 850,000 | 610,000 | ||||
| Prepaid expenses | 50,000 | 40,000 | ||||
| Total current assets | $1,800,000 | $1,300,000 | ||||
| Accounts payable | $ 700,000 | $ 460,000 | ||||
| Accrued liabilities | 50,000 | 40,000 | ||||
| Total current liabilities | $ 750,000 | $ 500,000 |
a. Determine for each year (1) the
| 20Y9 | 20Y8 | |||
| Working capital | $fill in the blank 1 | $fill in the blank 2 | ||
| Current ratio | fill in the blank 3 | fill in the blank 4 | ||
| Quick ratio | fill in the blank 5 | fill in the blank 6 |
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