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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Current Position Analysis
The following data were taken from the
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
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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