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 Temporary investments Accounts and notes receivable (net) Inventories Prepaid expenses Total current assets Accounts payable Accrued liabilities Total current liabilities Working capital Current ratio Check My Work 20Y9 1,104,000 ✓ 3.3 ✓ 20Y8 688,000 $283,400 2.6 ✔ 302,400 278,200 388,800 331,200 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. $1,584,000 $278,400 201,600 $480,000 $209,200 229,100 249,700 309,600 120,400 $1,118,000 $301,000 129,000 $430,000 Previous Next >
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 Temporary investments Accounts and notes receivable (net) Inventories Prepaid expenses Total current assets Accounts payable Accrued liabilities Total current liabilities Working capital Current ratio Check My Work 20Y9 1,104,000 ✓ 3.3 ✓ 20Y8 688,000 $283,400 2.6 ✔ 302,400 278,200 388,800 331,200 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. $1,584,000 $278,400 201,600 $480,000 $209,200 229,100 249,700 309,600 120,400 $1,118,000 $301,000 129,000 $430,000 Previous Next >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text: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
$209,200
229,100
249,700
Cash
Temporary investments
Accounts and notes receivable (net)
Inventories
Prepaid expenses
Total current assets
Accounts payable
Accrued liabilities
Total current liabilities
Working capital
Current ratio
Check My Work
20Y9
1,104,000 ✓
3.3 ✓
20Y8
688,000
$283,400
2.6 ✔
302,400
278,200
388,800
a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
331,200
$1,584,000
$278,400
201,600
$480,000
309,600
120,400
$1,118,000
$301,000
129,000
$430,000
Previous
Next >

Transcribed Image Text:eBook
Accounts payable
Accrued liabilities
Total current liabilities.
Working capital
Current ratio
Quick ratio
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
Feedback
1,104,000
3.3 ✔
Show Me How Video
-1.3 X
20Y8
688,000
2.6 ✓
-1.3 X
$278,400
201,600
$480,000
b. The liquidity of Osborn Sisters Company has improved
increased
$301,000
129,000
$430,000
✔from 20Y8 to the 20Y9. The working capital, current ratio, and quick ratio have all
V.
✓. Most of these changes are the result of an increase in current assets
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