Current Year Previous Year Current assets: $ 320,000 $ 414,000 Cash Marketable securities 496,800 336,000 Accounts and notes receivable (net) 619,200 464,000 272,000 Inventories 351,900 Prepaid expenses 188,100 208,000 Total current assets $2,070,000 $1,600,000 Current liabilities: $ 675,000 $ 600,000 Accounts and notes payable (short-term) Accrued liabilities 225,000 200,000 $ 800,000 $ 900,000 Total current liabilities
Current Year Previous Year Current assets: $ 320,000 $ 414,000 Cash Marketable securities 496,800 336,000 Accounts and notes receivable (net) 619,200 464,000 272,000 Inventories 351,900 Prepaid expenses 188,100 208,000 Total current assets $2,070,000 $1,600,000 Current liabilities: $ 675,000 $ 600,000 Accounts and notes payable (short-term) Accrued liabilities 225,000 200,000 $ 800,000 $ 900,000 Total current liabilities
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 9.4.10P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...
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Question
The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years:
Please see the attachment for details:
a. Determine for each year (1) the
b. What conclusions can be drawn from these data as to the company’s ability
to meet its currently maturing debts?
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