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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The following data were taken from the comparative
| 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
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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