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, 20Y8Cash$295,200 $218,900 Temporary investments315,000 239,800 Accounts and notes receivable (net)289,800 261,300 Inventories405,000 324,000 Prepaid expenses345,000 126,000 Total current assets$1,650,000 $1,170,000 Accounts payable$290,000 $315,000 Accrued liabilities210,000 135,000 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, 20Y9Dec. 31, 20Y8Cash$295,200$218,900Temporary investments315,000239,800Accounts and notes receivable (net)289,800261,300Inventories405,000324,000Prepaid expenses345,000126,000Total current assets$1,650,000$1,170,000Accounts payable$290,000$315,000Accrued liabilities210,000135,000Total 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.20Υ920Y8Working capitalCurrent ratioQuick ratiob. The liquidity of Osborn Sisters Company hasfrom 20Y8 to the 20Y9. The working capital, current ratio, and quick ratio have allMost ofthese changes are the result of

Current ratio is a ratio which specifies about the ability of the company to pay-off their current…

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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

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

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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