The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years:Line Item DescriptionCurrent YearPrevious YearCurrent assets: Cash$417,200 $318,000 Marketable securities483,100 357,800 Accounts and notes receivable (net)197,700 119,200 Inventories1,167,500 905,200 Prepaid expenses601,500 578,800 Total current assets$2,867,000 $2,279,000 Current liabilities: Accounts and notes payable (short-term)$353,800 $371,000 Accrued liabilities256,200 159,000 Total current liabilities$610,000 $530,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.Line Item DescriptionCurrent YearPrevious Year1. Working capital??2. Current ratio??3. Quick ratio?? from the preceding year to the current year. The working capital, current ratio, and quick ratio have all fill in the blank 2 of 3 . Most of these changes are the result of an fill in the blank 3 of 3 in current assets relative to current liabilities.

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Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years:

Line Item Description	Current Year	Previous Year
Current assets:
Cash	$417,200	$318,000
Marketable securities	483,100	357,800
Accounts and notes receivable (net)	197,700	119,200
Inventories	1,167,500	905,200
Prepaid expenses	601,500	578,800
Total current assets	$2,867,000	$2,279,000
Current liabilities:
Accounts and notes payable (short-term)	$353,800	$371,000
Accrued liabilities	256,200	159,000
Total current liabilities	$610,000	$530,000

a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.

Line Item Description	Current Year	Previous Year
1. Working capital	?	?
2. Current ratio	?	?
3. Quick ratio	?	?

from the preceding year to the current year. The working capital, current ratio, and quick ratio have all fill in the blank 2 of 3

. Most of these changes are the result of an fill in the blank 3 of 3

in current assets relative to current liabilities.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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