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 $273,600 $201,600 Marketable securities 316,800 226,800 Accounts and notes receivable (net) 129,600 75,600 Inventories 760,300 589,300 Prepaid expenses 391,700 376,700 Total current assets $1,872,000 $1,470,000 Current liabilities: Accounts and notes payable (short-term) $278,400 $294,000 Accrued liabilities 201,600 126,000 Total current liabilities $480,000 $420,000 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 $ $ 2. Current ratio 3. Quick ratio b. The liquidity of Albertini has improved from the preceding year to the current year. The working capital, current ratio, and quick ratio have all increased . Most of these changes are the result of an increase in current assets relative to current liabilities.
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 $273,600 $201,600 Marketable securities 316,800 226,800 Accounts and notes receivable (net) 129,600 75,600 Inventories 760,300 589,300 Prepaid expenses 391,700 376,700 Total current assets $1,872,000 $1,470,000 Current liabilities: Accounts and notes payable (short-term) $278,400 $294,000 Accrued liabilities 201,600 126,000 Total current liabilities $480,000 $420,000 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 $ $ 2. Current ratio 3. Quick ratio b. The liquidity of Albertini has improved from the preceding year to the current year. The working capital, current ratio, and quick ratio have all increased . Most of these changes are the result of an increase in current assets relative to current liabilities.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Current Position Analysis
The following data were taken from the
| Current Year | Previous Year | |
| Current assets: | ||
| Cash | $273,600 | $201,600 |
| Marketable securities | 316,800 | 226,800 |
| Accounts and notes receivable (net) | 129,600 | 75,600 |
| Inventories | 760,300 | 589,300 |
| Prepaid expenses | 391,700 | 376,700 |
| Total current assets | $1,872,000 | $1,470,000 |
| Current liabilities: | ||
| Accounts and notes payable |
| (short-term) | $278,400 | $294,000 |
| Accrued liabilities | 201,600 | 126,000 |
| Total current liabilities | $480,000 | $420,000 |
a. Determine for each year (1) the
| Current Year | Previous Year | |
| 1. Working capital | $ | $ |
| 2. Current ratio | ||
| 3. Quick ratio |
b. The liquidity of Albertini has improved from the preceding year to the current year. The working capital, current ratio, and quick ratio have all increased . Most of these changes are the result of an increase in current assets relative to current liabilities.
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