Accounting
27th Edition
ISBN: 9781337272094
Author: WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher: Cengage Learning,
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Question
Chapter 17, Problem 17.7EX
a.
To determine
Financial Ratios: Financial ratios are the metrics used to evaluate the capabilities, profitability, and overall performance of a company.
To compute: Current and acid-test ratio for current year and previous year.
Given info: Items of current asset and current liabilities.
b.
To determine
To provide: Conclusion towards company’s ratios
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Current Position Analysis
The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
$506,200
$384,000
Marketable securities
586,100
432,000
Accounts and notes receivable (net)
239,700
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(short-term)
$429,200
$448,000
Accrued liabilities
310,800
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a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
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$fill in the blank 2
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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:
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$368,200
$281,600
Marketable securities
126,400
316,000
Accounts and notes receivable (net)
174,400
105,600
Inventories
639,500
402,600
Prepaid expenses
129,500
257,400
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$1,930,000
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$300,000
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$510,000
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a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
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Current Position Analysis
The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
$486,400
$392,000
Marketable securities
563,200
441,000
Accounts and notes receivable (net)
230,400
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Inventories
792,000
469,700
Prepaid expenses
408,000
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$2,480,000
$1,750,000
Current liabilities:
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$464,000
$490,000
Accrued liabilities
336,000
210,000
Total current liabilities
$800,000
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Chapter 17 Solutions
Accounting
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