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(a)
Financial Statements: A part of annual report that is attributed to the financials of the company for an accounting period is called financial statements. These include income statement, statement of
Current Liability: Every company has some debts or liabilities which need to be paid in less than one year or during current accounting period. Those debts or liabilities are called current liabilities.
To identify: The largest current liability account and total current liabilities for Company A and W.
(b)(1)
To compute: The working capital for Company A for 2013 and W for 2014.
(2)
To compute: The current ratio for Company A for 2013 and W for 2014.
(c)
To analyze: The liquidity of Company A and W based on working capital and current ratio.
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Chapter 11 Solutions
Accounting Principles, Volume 2: Chapters 13 - 26
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