Question
In: Finance
Current Position Analysis The following data were taken from the balance sheet of Nilo Company at...
Current Position Analysis
The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years:
| Current Year | Previous Year | |||||||
| Current assets: | ||||||||
| Cash | $334,400 | $249,600 | ||||||
| Marketable securities | 387,200 | 280,800 | ||||||
| Accounts and notes receivable (net) | 158,400 | 93,600 | ||||||
| Inventories | 798,600 | 585,600 | ||||||
| Prepaid expenses | 411,400 | 374,400 | ||||||
| Total current assets | $2,090,000 | $1,584,000 | ||||||
| Current liabilities: | ||||||||
| Accounts and notes payable | ||||||||
| (short-term) | $319,000 | $336,000 | ||||||
| Accrued liabilities | 231,000 | 144,000 | ||||||
| Total current liabilities | $550,000 | $480,000 | ||||||
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 | $ | $ | ||||
| 2. Current ratio | ||||||
| 3. Quick ratio | ||||||
b. The liquidity of Nilo has from the preceding year to the current year. The working capital, current ratio, and quick ratio have all . Most of these changes are the result of an in current assets relative to current liabilities.
Solutions
Expert Solution
Working Capital for the Current Year
Working Capital for the Current Year = Total current assets – Total current liabilities
= $2,090,000 - $550,000
= $1,540,000
Working Capital for the Previous Year
Working Capital for the Previous Year = Total current assets – Total current liabilities
= $1,584,000 - $480,000
= $1,104,000
Current ratio for the Current Year
Current ratio for the Current Year = Total current assets / Total current liabilities
= $2,090,000 / $550,000
= 3.8 Times
Current ratio for the Previous Year
Current ratio for the Previous Year = Total current assets / Total current liabilities
= $1,584,000 / $480,000
= 3.3 Times
Quick ratio for the Current Year
Quick ratio for the Current Year = [Total current assets – Inventory – Prepaid expenses] / Total current liabilities
= [$2,090,000 - $798,600 - $411,400] / $550,000
= $880,000 / $550,000
= 1.6 Times
Quick ratio for the Previous Year
Quick ratio for the Previous Year = [Total current assets – Inventory – Prepaid expenses] / Total current liabilities
= [$1,584,000 - $585,600 - $374,400] / $480,000
= $624,000 / $480,000
= 1.3 Times
jeff jeffy answered 3 months agoRelated Solutions
Current Position Analysis The following data were taken from the balance sheet of Nilo Company at...
Current Position Analysis
The following data were taken from the balance sheet of Nilo
Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
$421,800
$307,200
Marketable securities
488,400
345,600
Accounts and notes receivable
(net)
199,800
115,200
Inventories
1,611,700
1,132,200
Prepaid expenses
830,300
723,800
Total current assets
$3,552,000
$2,624,000
Current liabilities:
Accounts and notes payable
(short-term)
$429,200
$448,000
Accrued liabilities
310,800
192,000
Total current liabilities
$740,000
$640,000
a. Determine for each year (1) the...
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The following data were taken from the balance sheet of Nilo
Company at the end of two recent fiscal years:
Current Year
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Current assets:
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Marketable securities
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504,000
Accounts and notes receivable
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253,500
168,000
Inventories
887,000
614,900
Prepaid expenses
457,000
393,100
Total current assets
$2,752,000
$2,128,000
Current liabilities:
Accounts and notes payable
(short-term)
$371,200
$392,000
Accrued liabilities
268,800
168,000
Total current liabilities
$640,000
$560,000
a. Determine for each year (1) the...
Current Position Analysis The following data were taken from the balance sheet of Nilo Company at...
Current Position Analysis The following data were taken from the
balance sheet of Nilo Company at the end of two recent fiscal
years: Current Year Previous Year Current assets: Cash $556,300
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receivable (net) 263,500 166,900 Inventories 603,900 452,600
Prepaid expenses 311,100 289,400 Total current assets $2,379,000
$1,855,000 Current liabilities: Accounts and notes payable
(short-term) $353,800 $371,000 Accrued liabilities 256,200 159,000
Total current liabilities $610,000 $530,000 a. Determine for each
year (1) the...
Current Position Analysis The following data were taken from the balance sheet of Nilo Company at...
Current Position Analysis
The following data were taken from the balance sheet of Nilo
Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
$419,500
$312,000
Marketable securities
485,800
351,000
Accounts and notes receivable
(net)
198,700
117,000
Inventories
683,100
475,800
Prepaid expenses
351,900
304,200
Total current assets
$2,139,000
$1,560,000
Current liabilities:
Accounts and notes payable
(short-term)
$400,200
$420,000
Accrued liabilities
289,800
180,000
Total current liabilities
$690,000
$600,000
a. Determine for each year (1) the...
Current Position Analysis The following data were taken from the balance sheet of Nilo Company at...
Current Position Analysis
The following data were taken from the balance sheet of Nilo
Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
$425,600
$317,200
Marketable securities
492,800
356,900
Accounts and notes receivable
(net)
201,600
118,900
Inventories
646,800
372,100
Prepaid expenses
333,200
237,900
Total current assets
$2,100,000
$1,403,000
Current liabilities:
Accounts and notes payable
(short-term)
$406,000
$427,000
Accrued liabilities
294,000
183,000
Total current liabilities
$700,000
$610,000
a. Determine for each year (1) the...
The following data were taken from the balance sheet of Nilo Company at the end of...
The following data were taken from the balance sheet of Nilo
Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
$424,100
$324,000
Marketable securities
491,000
364,500
Accounts and notes receivable
(net)
200,900
121,500
Inventories
982,100
658,800
Prepaid expenses
505,900
421,200
Total current assets
$2,604,000
$1,890,000
Current liabilities:
Accounts and notes payable
(short-term)
$359,600
$378,000
Accrued liabilities
260,400
162,000
Total current liabilities
$620,000
$540,000
a. Determine for each year (1) the working
capital, (2)...
The following data were taken from the balance sheet of Nilo Company at the end of...
The following data were taken from the balance sheet of Nilo
Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
$340,500
$268,800
Marketable securities
394,200
302,400
Accounts and notes receivable
(net)
161,300
100,800
Inventories
1,056,000
683,200
Prepaid expenses
544,000
436,800
Total current assets
$2,496,000
$1,792,000
Current liabilities:
Accounts and notes payable
(short-term)
$371,200
$392,000
Accrued liabilities
268,800
168,000
Total current liabilities
$640,000
$560,000
a. Determine for each year (1) the working
capital, (2)...
The following data were taken from the balance sheet of Nilo Company at the end of...
The following data were taken from the balance sheet of Nilo
Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
$492,500
$403,200
Marketable securities
570,200
453,600
Accounts and notes receivable
(net)
233,300
151,200
Inventories
617,800
422,700
Prepaid expenses
318,200
270,300
Total current assets
$2,232,000
$1,701,000
Current liabilities:
Accounts and notes payable
(short-term)
$417,600
$441,000
Accrued liabilities
302,400
189,000
Total current liabilities
$720,000
$630,000
a. Determine for each year (1) the working
capital, (2)...
The following data were taken from the balance sheet of Nilo Company at the end of...
The following data were taken from the balance sheet of Nilo
Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
$297,200
$224,000
Marketable securities
344,100
252,000
Accounts and notes receivable
(net)
140,700
84,000
Inventories
880,400
658,800
Prepaid expenses
453,600
421,200
Total current assets
$2,116,000
$1,640,000
Current liabilities:
Accounts and notes payable
(short-term)
$266,800
$280,000
Accrued liabilities
193,200
120,000
Total current liabilities
$460,000
$400,000
a. Determine for each year (1) the working
capital, (2)...
The following data were taken from the balance sheet of Nilo Company at the end of...
The following data were taken from the balance sheet of Nilo
Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
$458,700
$347,200
Marketable securities
531,100
390,600
Accounts and notes receivable
(net)
217,200
130,200
Inventories
1,546,400
1,134,600
Prepaid expenses
796,600
725,400
Total current assets
$3,550,000
$2,728,000
Current liabilities:
Accounts and notes payable
(short-term)
$411,800
$434,000
Accrued liabilities
298,200
186,000
Total current liabilities
$710,000
$620,000
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capital, (2)...
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