Current Position Analysis 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 $ 150,000 $ 100,000 Temporary investments 250,000 150,000 Accounts and notes receivable (net) 500,000 400,000 Inventories 850,000 610,000 Prepaid expenses 50,000 40,000 Total current assets $1,800,000 $1,300,000 Accounts payable $ 700,000 $ 460,000 Accrued liabilities 50,000 40,000 Total current liabilities $ 750,000 $ 500,000 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
Current Position Analysis 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 $ 150,000 $ 100,000 Temporary investments 250,000 150,000 Accounts and notes receivable (net) 500,000 400,000 Inventories 850,000 610,000 Prepaid expenses 50,000 40,000 Total current assets $1,800,000 $1,300,000 Accounts payable $ 700,000 $ 460,000 Accrued liabilities 50,000 40,000 Total current liabilities $ 750,000 $ 500,000 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
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
Related questions
Question
Current Position Analysis
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 | $ 150,000 | $ 100,000 | ||||
Temporary investments | 250,000 | 150,000 | ||||
Accounts and notes receivable (net) | 500,000 | 400,000 | ||||
Inventories | 850,000 | 610,000 | ||||
Prepaid expenses | 50,000 | 40,000 | ||||
Total current assets | $1,800,000 | $1,300,000 | ||||
Accounts payable | $ 700,000 | $ 460,000 | ||||
Accrued liabilities | 50,000 | 40,000 | ||||
Total current liabilities | $ 750,000 | $ 500,000 |
a. Determine for each year (1) the
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 |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning