Current Position AnalysisThe following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years: Current Year Previous YearCurrent assets: Cash$446,900 $372,400 Marketable securities517,400 419,000 Accounts and notes receivable (net)211,700 139,600 Inventories1,071,800 807,000 Prepaid expenses552,200 516,000 Total current assets$2,800,000 $2,254,000 Current liabilities: Accounts and notes payable (short-term)$324,800 $343,000 Accrued liabilities235,200 147,000 Total current liabilities$560,000 $490,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current Year Previous Year1. Working capital$fill in the blank 1$fill in the blank 22. Current ratiofill in the blank 3fill in the blank 43. Quick ratiofill in the blank 5fill in the blank 6

Working capital is an indicator of short term financial position of an entity. It is determined as…

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Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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Current Position Analysis

The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years:

	Current Year		Previous Year
Current assets:
Cash	$446,900			$372,400
Marketable securities	517,400			419,000
Accounts and notes receivable (net)	211,700			139,600
Inventories	1,071,800			807,000
Prepaid expenses	552,200			516,000
	Total current assets	$2,800,000			$2,254,000
Current liabilities:
Accounts and notes payable
	(short-term)	$324,800			$343,000
Accrued liabilities	235,200			147,000
	Total current liabilities	$560,000			$490,000

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 Year	Previous Year
1. Working capital	$fill in the blank 1	$fill in the blank 2
2. Current ratio	fill in the blank 3	fill in the blank 4
3. Quick ratio	fill in the blank 5	fill in the blank 6

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