Current Position AnalysisThe following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years: Current Year Previous YearCurrent assets: Cash$620,200 $495,600 Marketable securities718,100 557,600 Accounts and notes receivable (net)293,700 185,800 Inventories314,200 179,900 Prepaid expenses161,800 115,100 Total current assets$2,108,000 $1,534,000 Current liabilities: Accounts and notes payable (short-term)$394,400 $413,000 Accrued liabilities285,600 177,000 Total current liabilities$680,000 $590,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current Year Previous Year1. Working capital$fill in the blank 1$fill in the blank 22. Current ratiofill in the blank 3fill in the blank 43. Quick ratiofill in the blank 5fill in the blank 6b. The liquidity of Albertini has from the preceding year to the current year. The working capital, current ratio, and quick ratio have all . Most of these changes are the result of an in current assets relative to current liabilities.

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Managerial Accounting: The Cornerstone of Business Decision-Making

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

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

Chapter15: Financial Statement Analysis

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Current Position Analysis

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	$620,200			$495,600
Marketable securities	718,100			557,600
Accounts and notes receivable (net)	293,700			185,800
Inventories	314,200			179,900
Prepaid expenses	161,800			115,100
	Total current assets	$2,108,000			$1,534,000
Current liabilities:
Accounts and notes payable
	(short-term)	$394,400			$413,000
Accrued liabilities	285,600			177,000
	Total current liabilities	$680,000			$590,000

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
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

b. The liquidity of Albertini has

from the preceding year to the current year. The working capital, current ratio, and quick ratio have all

. Most of these changes are the result of an

in current assets relative to current liabilities.

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