### Working Capital and Current Ratio#### Current assets and current liabilities for Konex Properties Properties Company are as follows:| | 20Y9 | 20Y8 ||---|------|------|| **Current assets** | $697,400 | $873,000 || **Current liabilities** | $634,000 | $582,000 |**a. Determine the working capital and current ratio for 20Y9 and 20Y8. If required, round "current ratio" answers to two decimal places.**| | 20Y9 | 20Y8 ||---|------|------|| **Working capital** | $ | $ || **Current ratio** | | |**b. Is the change in the current ratio from 20Y8 to 20Y9 favorable or unfavorable?**| | ||---|---|| **Change** | [Dropdown for Favorable/Unfavorable] | **Graph/Diagram Explanation:**Currently, there are no graphs or diagrams provided in this image. The image contains a table with financial data and spaces to calculate the working capital and current ratio for the years 20Y9 and 20Y8. Working capital is calculated as follows:\[ \text{Working Capital} = \text{Current Assets} - \text{Current Liabilities} \]The current ratio is calculated as follows:\[ \text{Current Ratio} = \frac{\text{Current Assets}}{\text{Current Liabilities}} \]

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Description: ### Working Capital and Current Ratio#### Current assets and current liabilities for Konex Properties Properties Company are as follows:| | 20Y9 | 20Y8 ||---|------|------|| **Current assets** | $697,400 | $873,000 || **Current liabilities** | $63

Working capital is the capital required to run a day-to-day business activity. Working capital is…

Business

Accounting

Working Capital and Current Ratio Current assets and current liabilities for Konex Properties Properties Company follow: 20Y9 20Y8 Current assets $697,400 $873,000 Current liabilities 634,000 582,000 a. Determine the working capital and current ratio for 20Y9 and 20Y8. If required, round "current ratio" answers to two decimal places. 20Y9 20Y8 Working capital Current ratio b. Is the change in the current ratio from 20Y8 to 20Y9 favorable or unfavorable?

Working Capital and Current Ratio Current assets and current liabilities for Konex Properties Properties Company follow: 20Y9 20Y8 Current assets $697,400 $873,000 Current liabilities 634,000 582,000 a. Determine the working capital and current ratio for 20Y9 and 20Y8. If required, round "current ratio" answers to two decimal places. 20Y9 20Y8 Working capital Current ratio b. Is the change in the current ratio from 20Y8 to 20Y9 favorable or unfavorable?

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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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

### Working Capital and Current Ratio

#### Current assets and current liabilities for Konex Properties Properties Company are as follows:

| | 20Y9 | 20Y8 |
|---|------|------|
| **Current assets** | $697,400 | $873,000 |
| **Current liabilities** | $634,000 | $582,000 |

**a. Determine the working capital and current ratio for 20Y9 and 20Y8. If required, round "current ratio" answers to two decimal places.**

| | 20Y9 | 20Y8 |
|---|------|------|
| **Working capital** | $ | $ |
| **Current ratio** | | |

**b. Is the change in the current ratio from 20Y8 to 20Y9 favorable or unfavorable?**

| | |
|---|---|
| **Change** | [Dropdown for Favorable/Unfavorable] |

**Graph/Diagram Explanation:**

Currently, there are no graphs or diagrams provided in this image. The image contains a table with financial data and spaces to calculate the working capital and current ratio for the years 20Y9 and 20Y8.
Working capital is calculated as follows:
\[ \text{Working Capital} = \text{Current Assets} - \text{Current Liabilities} \]

The current ratio is calculated as follows:
\[ \text{Current Ratio} = \frac{\text{Current Assets}}{\text{Current Liabilities}} \]

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