Current assets and current liabilities for Brimstone Company follow: 20Y4 20Y3 Current assets $1,529,000 $1,128,750 Current liabilities 695,000 525,000 a. Determine the working capital and current ratio for 20Y4 and 20Y3. Round Current ratio to 2 decimal places. 20Y4 20Y3 Working capital $ $ Current ratio b. Does the change in the current ratio from 20Y3 to 20Y4 indicate a favorable or an unfavorable change?
Current assets and current liabilities for Brimstone Company follow: 20Y4 20Y3 Current assets $1,529,000 $1,128,750 Current liabilities 695,000 525,000 a. Determine the working capital and current ratio for 20Y4 and 20Y3. Round Current ratio to 2 decimal places. 20Y4 20Y3 Working capital $ $ Current ratio b. Does the change in the current ratio from 20Y3 to 20Y4 indicate a favorable or an unfavorable change?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Current assets and current liabilities for Brimstone Company follow:
| 20Y4 | 20Y3 | ||||
| Current assets | $1,529,000 | $1,128,750 | |||
| Current liabilities | 695,000 | 525,000 |
a. Determine the working capital and current ratio for 20Y4 and 20Y3. Round Current ratio to 2 decimal places.
| 20Y4 | 20Y3 | ||||
| Working capital | $ | $ | |||
| Current ratio |
b. Does the change in the current ratio from 20Y3 to 20Y4 indicate a favorable or an unfavorable change?
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