Effect of Transactions on Current Position Analysis
Data pertaining to the current position of Newlan Company are as
follows:
Cash
$234,100
Temporary investments
120,600
Accounts and notes receivable (net)
354,800
Inventories
359,500
Prepaid expenses
18,900
Accounts payable
165,600
Notes payable (short-term)
236,500
Accrued expenses
70,900
Instructions:
1. Compute (a) the working capital, (b) the
current ratio, and (c) the quick ratio. Round the current ratio and
the quick ratio to one decimal place.
Working capital
$
Current ratio
Quick ratio...