(answer to quick ratio)Current Position AnalysisThe 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$ 150,000 $ 100,000 Temporary investments250,000 150,000 Accounts and notes receivable (net)500,000 400,000 Inventories850,000 610,000 Prepaid expenses50,000 40,000 Total current assets$1,800,000 $1,300,000 Accounts payable$ 700,000 $ 460,000 Accrued liabilities50,000 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. 20Y920Y8Working 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

We know that working capital is cash that is used to run day to day activities of the business. It…

Answered: Current Position Analysis

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

See similar textbooks

Related questions

Question

(answer to quick ratio)

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

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions