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 $608,800 $459,600 Temporary investments 649,600 503,500 Accounts and notes receivable (net) 597,600 548,900 Inventories 835,200 680,400 Prepaid expenses 380,800 215,600 Total current assets $3,072,000 $2,408,000 Accounts payable $371,20 $392,000 Accrued liabilities 268,800 168,000 Total current liabilities $640,000 $560,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. 20Y9 . 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

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 $608,800 $459,600 Temporary investments 649,600 503,500 Accounts and notes receivable (net) 597,600 548,900 Inventories 835,200 680,400 Prepaid expenses 380,800 215,600 Total current assets $3,072,000 $2,408,000 Accounts payable $371,20 $392,000 Accrued liabilities 268,800 168,000 Total current liabilities $640,000 $560,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. 20Y9 . 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

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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