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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:             Cash $383,000     $302,400     Marketable securities 443,500     340,200     Accounts and notes receivable (net) 181,500     113,400     Inventories 792,000     614,900     Prepaid expenses 408,000     393,100       Total current assets $2,208,000     $1,764,000   Current liabilities:             Accounts and notes payable           (short-term) $278,400     $294,000     Accrued liabilities 201,600     126,000       Total current liabilities $480,000     $420,000   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 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:             Cash $383,000     $302,400     Marketable securities 443,500     340,200     Accounts and notes receivable (net) 181,500     113,400     Inventories 792,000     614,900     Prepaid expenses 408,000     393,100       Total current assets $2,208,000     $1,764,000   Current liabilities:             Accounts and notes payable           (short-term) $278,400     $294,000     Accrued liabilities 201,600     126,000       Total current liabilities $480,000     $420,000   a.  Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 6E: The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal...
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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:          
  Cash $383,000     $302,400  
  Marketable securities 443,500     340,200  
  Accounts and notes receivable (net) 181,500     113,400  
  Inventories 792,000     614,900  
  Prepaid expenses 408,000     393,100  
    Total current assets $2,208,000     $1,764,000  
Current liabilities:          
  Accounts and notes payable      
    (short-term) $278,400     $294,000  
  Accrued liabilities 201,600     126,000  
    Total current liabilities $480,000     $420,000  

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

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 2. Current ratio $ 3. Quick ratio b. The liquidity of Nilo has Most of these changes are the result of an $ from the preceding year to the current year. The working capital, current ratio, and quick ratio have all in current assets relative to current liabilities.
Transcribed Image Text: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 2. Current ratio $ 3. Quick ratio b. The liquidity of Nilo has Most of these changes are the result of an $ from the preceding year to the current year. The working capital, current ratio, and quick ratio have all in current assets relative to current liabilities.
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