The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash $513,000 $416,000 Marketable securities 594,000 468,000 Accounts and notes receivable (net) 243,000 156,000 Inventories 1,485,000 1,030,900 Prepaid expenses 765,000 659,100 Total current assets $3,600,000 $2,730,000 Current liabilities: Accounts and notes payable (short-term) $435,000 $455,000 Accrued liabilities 315,000 195,000 Total current liabilities $750,000 $650,000 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 Previous Year
The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash $513,000 $416,000 Marketable securities 594,000 468,000 Accounts and notes receivable (net) 243,000 156,000 Inventories 1,485,000 1,030,900 Prepaid expenses 765,000 659,100 Total current assets $3,600,000 $2,730,000 Current liabilities: Accounts and notes payable (short-term) $435,000 $455,000 Accrued liabilities 315,000 195,000 Total current liabilities $750,000 $650,000 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 Previous Year
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years:
| Current Year | Previous Year | |||||
| Current assets: | ||||||
| Cash | $513,000 | $416,000 | ||||
| Marketable securities | 594,000 | 468,000 | ||||
| Accounts and notes receivable (net) | 243,000 | 156,000 | ||||
| Inventories | 1,485,000 | 1,030,900 | ||||
| Prepaid expenses | 765,000 | 659,100 | ||||
| Total current assets | $3,600,000 | $2,730,000 | ||||
| Current liabilities: | ||||||
| Accounts and notes payable | ||||||
| (short-term) | $435,000 | $455,000 | ||||
| Accrued liabilities | 315,000 | 195,000 | ||||
| Total current liabilities | $750,000 | $650,000 |
a. Determine for each year (1) the
| Current Year | Previous Year | |||||
| 1. Working capital | $fill in the blank 1 | $fill in the blank 2 | ||||
| 2. Current ratio | fill in the blank 3 | fill in the blank 4 | ||||
| 3. Quick ratio | fill in the blank 5 | fill in the blank 6 |
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