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) 230,400 147,000 Inventories 792,000 469,700 Prepaid expenses 408,000 300,300 Total current assets $2,480,000 $1,750,000 Current liabilities: Accounts and notes payable (short-term) $464,000 $490,000 Accrued liabilities 336,000 210,000 Total current liabilities $800,000 $700,000 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 b. The liquidity of Albertini has from the preceding year to the current year. The working capital, current ratio, and quick ratio have all . Most of these changes are the result of an in current assets relative to current liabilities. Check My Work

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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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			147,000
Inventories	792,000			469,700
Prepaid expenses	408,000			300,300
	Total current assets	$2,480,000			$1,750,000
Current liabilities:
Accounts and notes payable
	(short-term)	$464,000			$490,000
Accrued liabilities	336,000			210,000
	Total current liabilities	$800,000			$700,000

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