The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Line Item Description Current Year Previous Year Current assets: Cash $445,700 $352,000 Marketable securities 516,100 396,000 Accounts and notes receivable (net) 211,200 132,000 Inventories 370,300 241,600 Prepaid expenses 190,700 154,400 Total current assets $1,734,000 $1,276,000 Current liabilities: Accounts and notes payable (short-term) $295,800 $308,000 Accrued liabilities 214,200 132,000 Total current liabilities $510,000 $440,000 a. Determine for each year the quick ratio. Round ratios to one decimal place.
The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Line Item Description Current Year Previous Year Current assets: Cash $445,700 $352,000 Marketable securities 516,100 396,000 Accounts and notes receivable (net) 211,200 132,000 Inventories 370,300 241,600 Prepaid expenses 190,700 154,400 Total current assets $1,734,000 $1,276,000 Current liabilities: Accounts and notes payable (short-term) $295,800 $308,000 Accrued liabilities 214,200 132,000 Total current liabilities $510,000 $440,000 a. Determine for each year the quick ratio. Round ratios to one decimal place.
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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The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years:
| Line Item Description | Current Year | Previous Year |
|---|---|---|
| Current assets: | ||
| Cash | $445,700 | $352,000 |
| Marketable securities | 516,100 | 396,000 |
| Accounts and notes receivable (net) | 211,200 | 132,000 |
| Inventories | 370,300 | 241,600 |
| Prepaid expenses | 190,700 | 154,400 |
| Total current assets | $1,734,000 | $1,276,000 |
| Current liabilities: | ||
| Accounts and notes payable (short-term) | $295,800 | $308,000 |
| Accrued liabilities | 214,200 | 132,000 |
| Total current liabilities | $510,000 | $440,000 |
a. Determine for each year the quick ratio. Round ratios to one decimal place.
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