**Transcription and Explanation for Educational Website**---**PA13. LO 5.3**Using the following Balance Sheet summary information, for the two years presented calculate:A. Working capitalB. Current ratio| | 12/31/2018 | 12/31/2019 ||----------------|-------------|-------------|| Current assets | $101,600 | $97,350 || Current liabilities | $33,650 | $32,800 |**Description:**This table provides a summary of current assets and current liabilities for two consecutive years, ending December 31, 2018, and December 31, 2019. These figures are essential for calculating:- **Working Capital:** - Formula: Working Capital = Current Assets - Current Liabilities - **Current Ratio:** - Formula: Current Ratio = Current Assets / Current LiabilitiesFrom the data provided:- **For 12/31/2018:** - Current Assets = $101,600 - Current Liabilities = $33,650 - **For 12/31/2019:** - Current Assets = $97,350 - Current Liabilities = $32,800These calculations will help assess the liquidity and financial health of a business over these periods.

Solution:- Calculation of current ratio and working capital as follows:-

PA13. LO 5.3 Using the following Balance Sheet summary information, for the two years presented calculate: A. working capital B. current ratio 12/31/2018 12/31/2019 Current assets $101,600 $97,350 Current liabilities 33,650 32,800

PA13. LO 5.3 Using the following Balance Sheet summary information, for the two years presented calculate: A. working capital B. current ratio 12/31/2018 12/31/2019 Current assets $101,600 $97,350 Current liabilities 33,650 32,800

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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Question

**Transcription and Explanation for Educational Website**

---

**PA13. LO 5.3**

Using the following Balance Sheet summary information, for the two years presented calculate:

A. Working capital

B. Current ratio

| | 12/31/2018 | 12/31/2019 |
|----------------|-------------|-------------|
| Current assets | $101,600 | $97,350 |
| Current liabilities | $33,650 | $32,800 |

**Description:**

This table provides a summary of current assets and current liabilities for two consecutive years, ending December 31, 2018, and December 31, 2019. These figures are essential for calculating:

- **Working Capital:**
- Formula: Working Capital = Current Assets - Current Liabilities

- **Current Ratio:**
- Formula: Current Ratio = Current Assets / Current Liabilities

From the data provided:

- **For 12/31/2018:**
- Current Assets = $101,600
- Current Liabilities = $33,650

- **For 12/31/2019:**
- Current Assets = $97,350
- Current Liabilities = $32,800

These calculations will help assess the liquidity and financial health of a business over these periods.

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