Using the following Balance Sheet summary information, calculate for the two companies presented: ⦁    working capital  ⦁    current ratio Then:  ⦁    evaluate which company’s liquidity position appears stronger, and why.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Using the following Balance Sheet summary information, calculate for the two companies presented:
⦁    working capital 
⦁    current ratio
Then: 
⦁    evaluate which company’s liquidity position appears stronger, and why.

Company L
Company M
$215,500
132,700
Current assets
$425,000
Current liabilities
335,000
Transcribed Image Text:Company L Company M $215,500 132,700 Current assets $425,000 Current liabilities 335,000
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