The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous Year Current asséts: Cash $391,000 $300,000 Marketable securities 515,000 354,000 Accounts and notes receivable (net) 634,000 426,000 Inventories 368,000 222,000 Prepaid expenses 182,000 138,000 Total current assets $2,090,000 $1,440,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years:
Current Year
Previous Year
Current asséts:
Cash
$391,000
$300,000
Marketable securities
515,000
354,000
Accounts and notes receivable (net)
634,000
426,000
Inventories
368,000
222,000
Prepaid expenses
182,000
138,000
Total current assets
$2,090,000
$1,440,000
Current liabilities:
Accounts and notes payable (short-term)
$725,000
$600,000
Accrued liabilities
275,000
300,000
Total current liabilities
$1,000,000
$900,000
a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
Current Year
Previous Year
1. Working Capital
2$
1,090,000
$4
540,000 V
2. Current ratio
2.09
1.60
3. Quick ratio
1.54
1.20
Transcribed Image Text:The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous Year Current asséts: Cash $391,000 $300,000 Marketable securities 515,000 354,000 Accounts and notes receivable (net) 634,000 426,000 Inventories 368,000 222,000 Prepaid expenses 182,000 138,000 Total current assets $2,090,000 $1,440,000 Current liabilities: Accounts and notes payable (short-term) $725,000 $600,000 Accrued liabilities 275,000 300,000 Total current liabilities $1,000,000 $900,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current Year Previous Year 1. Working Capital 2$ 1,090,000 $4 540,000 V 2. Current ratio 2.09 1.60 3. Quick ratio 1.54 1.20
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