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The following data were taken from the comparative balance sheet of Osborn Sisters Company for the years ended December 31, 20Y9 and December 31, 20Y8:   Dec. 31, 20Y9   Dec. 31, 20Y8 Cash $295,200     $218,900   Temporary investments 315,000     239,800   Accounts and notes receivable (net) 289,800     261,300   Inventories 405,000     324,000   Prepaid expenses 345,000     126,000     Total current assets $1,650,000     $1,170,000   Accounts payable $290,000     $315,000   Accrued liabilities 210,000     135,000     Total current liabilities $500,000     $450,000

The following data were taken from the comparative balance sheet of Osborn Sisters Company for the years ended December 31, 20Y9 and December 31, 20Y8:   Dec. 31, 20Y9   Dec. 31, 20Y8 Cash $295,200     $218,900   Temporary investments 315,000     239,800   Accounts and notes receivable (net) 289,800     261,300   Inventories 405,000     324,000   Prepaid expenses 345,000     126,000     Total current assets $1,650,000     $1,170,000   Accounts payable $290,000     $315,000   Accrued liabilities 210,000     135,000     Total current liabilities $500,000     $450,000

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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The following data were taken from the comparative balance sheet of Osborn Sisters Company for the years ended December 31, 20Y9 and December 31, 20Y8:

  Dec. 31, 20Y9   Dec. 31, 20Y8
Cash $295,200     $218,900  
Temporary investments 315,000     239,800  
Accounts and notes receivable (net) 289,800     261,300  
Inventories 405,000     324,000  
Prepaid expenses 345,000     126,000  
  Total current assets $1,650,000     $1,170,000  
Accounts payable $290,000     $315,000  
Accrued liabilities 210,000     135,000  
  Total current liabilities $500,000     $450,000  
The following data were taken from the comparative balance sheet of Osborn Sisters Company for the years ended December 31, 20Y9 and December 31, 20Y8: Dec. 31, 20Y9 Dec. 31, 20Y8 Cash $295,200 $218,900 Temporary investments 315,000 239,800 Accounts and notes receivable (net) 289,800 261,300 Inventories 405,000 324,000 Prepaid expenses 345,000 126,000 Total current assets $1,650,000 $1,170,000 Accounts payable $290,000 $315,000 Accrued liabilities 210,000 135,000 Total current liabilities $500,000 $450,000
Transcribed Image Text:The following data were taken from the comparative balance sheet of Osborn Sisters Company for the years ended December 31, 20Y9 and December 31, 20Y8: Dec. 31, 20Y9 Dec. 31, 20Y8 Cash $295,200 $218,900 Temporary investments 315,000 239,800 Accounts and notes receivable (net) 289,800 261,300 Inventories 405,000 324,000 Prepaid expenses 345,000 126,000 Total current assets $1,650,000 $1,170,000 Accounts payable $290,000 $315,000 Accrued liabilities 210,000 135,000 Total current liabilities $500,000 $450,000
a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. 20Υ9 20Y8 Working capital Current ratio Quick ratio b. The liquidity of Osborn Sisters Company has from 20Y8 to the 20Y9. The working capital, current ratio, and quick ratio have all Most of these changes are the result of
Transcribed Image Text:a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. 20Υ9 20Y8 Working capital Current ratio Quick ratio b. The liquidity of Osborn Sisters Company has from 20Y8 to the 20Y9. The working capital, current ratio, and quick ratio have all Most of these changes are the result of
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