Current Position AnalysisThe following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous YearCurrent assets: Cash$510,000 $402,800 Marketable securities590,500 453,200 Accounts and notes receivable (net)241,500 151,000 Inventories1,046,800 743,600 Prepaid expenses539,200 475,400 Total current assets$2,928,000 $2,226,000 Current liabilities: Accounts and notes payable (short-term)$353,800 $371,000 Accrued liabilities256,200 159,000 Total current liabilities$610,000 $530,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current Year Previous Year1. Working capital$fill in the blank 1$fill in the blank 22. Current ratiofill in the blank 3fill in the blank 43. Quick ratiofill in the blank 5fill in the blank 6

Formula: Current ratio = Current Assets / Current liabilities. Current Assets is divided with…

Answered: The following data were taken from the…

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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Current Position Analysis

The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years:

	Current Year		Previous Year
Current assets:
Cash	$510,000			$402,800
Marketable securities	590,500			453,200
Accounts and notes receivable (net)	241,500			151,000
Inventories	1,046,800			743,600
Prepaid expenses	539,200			475,400
	Total current assets	$2,928,000			$2,226,000
Current liabilities:
Accounts and notes payable
	(short-term)	$353,800			$371,000
Accrued liabilities	256,200			159,000
	Total current liabilities	$610,000			$530,000

a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.

			Current Year	Previous Year
1. Working capital	$fill in the blank 1	$fill in the blank 2
2. Current ratio	fill in the blank 3	fill in the blank 4
3. Quick ratio	fill in the blank 5	fill in the blank 6

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