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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 assets: Cash $620,500 $520,800 Marketable securities 718,500 585,900 Accounts and notes receivable (net) 294,000 195,300 Inventories 1,265,200 832,000 Prepaid expenses 651,800 532,000 Total current assets $3,550,000 $2,666,000 Current liabilities: Accounts and notes payable (short-term) $411,800 $434,000 Accrued liabilities 298,200 186,000 Total current liabilities $710,000 $620,000 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 Nilo 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.

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 assets: Cash $620,500 $520,800 Marketable securities 718,500 585,900 Accounts and notes receivable (net) 294,000 195,300 Inventories 1,265,200 832,000 Prepaid expenses 651,800 532,000 Total current assets $3,550,000 $2,666,000 Current liabilities: Accounts and notes payable (short-term) $411,800 $434,000 Accrued liabilities 298,200 186,000 Total current liabilities $710,000 $620,000 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 Nilo 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.

FINANCIAL ACCOUNTING
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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Current position analysis

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 assets: Cash $620,500 $520,800 Marketable securities 718,500 585,900 Accounts and notes receivable (net) 294,000 195,300 Inventories 1,265,200 832,000 Prepaid expenses 651,800 532,000 Total current assets $3,550,000 $2,666,000 Current liabilities: Accounts and notes payable (short-term) $411,800 $434,000 Accrued liabilities 298,200 186,000 Total current liabilities $710,000 $620,000 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 Nilo 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.
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 assets: Cash $620,500 $520,800 Marketable securities 718,500 585,900 Accounts and notes receivable (net) 294,000 195,300 Inventories 1,265,200 832,000 Prepaid expenses 651,800 532,000 Total current assets $3,550,000 $2,666,000 Current liabilities: Accounts and notes payable (short-term) $411,800 $434,000 Accrued liabilities 298,200 186,000 Total current liabilities $710,000 $620,000 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 Nilo 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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