(answer to Quick Ratio)The following data were taken from the comparative balance sheet of Osborn Sisters Company for the years ended December 31, 20Y9 and December 31, 20Y8: Dec. 31, 20Y9 Dec. 31, 20Y8Cash$360,800 $273,600 Temporary investments385,000 299,700 Accounts and notes receivable (net)354,200 326,700 Inventories495,000 405,000 Prepaid expenses355,000 135,000 Total current assets$1,950,000 $1,440,000 Accounts payable$290,000 $315,000 Accrued liabilities210,000 135,000 Total current liabilities$500,000 $450,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. 20Y9 20Y8Working capital $fill in the blank 1 $fill in the blank 2Current ratio fill in the blank 3 fill in the blank 4Quick ratio fill in the blank 5 fill in the blank 6

Working Capital = Current Assets - Current Liabilities Current Ratio = Current Assets/ Current…

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Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.6E

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(answer to Quick Ratio)

The following data were taken from the comparative balance sheet of Osborn Sisters Company for the years ended December 31, 20Y9 and December 31, 20Y8:

	Dec. 31, 20Y9		Dec. 31, 20Y8
Cash	$360,800			$273,600
Temporary investments	385,000			299,700
Accounts and notes receivable (net)	354,200			326,700
Inventories	495,000			405,000
Prepaid expenses	355,000			135,000
	Total current assets	$1,950,000			$1,440,000
Accounts payable	$290,000			$315,000
Accrued liabilities	210,000			135,000
	Total current liabilities	$500,000			$450,000

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

	20Y9	20Y8
Working capital		$fill in the blank 1	$fill in the blank 2
Current ratio		fill in the blank 3	fill in the blank 4
Quick ratio		fill in the blank 5	fill in the blank 6

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