Financial and Managerial Accounting - Workingpapers
Financial and Managerial Accounting - Workingpapers
15th Edition
ISBN: 9781337912112
Author: WARREN
Publisher: CENGAGE L
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Chapter 4, Problem 2MAD

Analyze and compare Zynga, Electronic Arts, and Take-Two

Data (in millions) from recent financial statements of Zynga Inc. (ZNGA), Electronic Arts Inc. (EA), and Take-Two Interactive Software, Inc. (TTWO) are as follows:

Chapter 4, Problem 2MAD, Analyze and compare Zynga, Electronic Arts, and Take-Two Data (in millions) from recent financial

  1. a. Compute the working capital for Year 2 and Year 1 for each company.
  2. b. Which company has the largest working capital?
  3. c. Compute the current ratio for Year 2 and Year 1 for each company. Round to one decimal place.
  4. d. For Year 2, rank the companies from most liquid to least liquid based upon the current ratio.
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Everton Manufacturing reported the following liabilities on its trial balance at December 31, 2021: Accounts payable: $45,000 Unearned revenue: $12,000 Bonds payable, due 2031: $75,000 Salaries payable: $22,000 Note payable, due 2022: $30,000 Note payable, due 2027: $55,000 What amount should be reported as current liabilities on Everton's December 31, 2021 balance sheet? a) $109,000 b) $67,000 c) $77,000 d) $87,000
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