Question
In: Accounting
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 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
| Current year |
| Working Capital=(Current Assets - Current Liabilities) |
| Working capital= 2139000-690000=$1449000 |
| Current Ratio:- Current Asset/ Current Liability |
| =(2139000/690000)= 3.1 |
| Quick Ratio:- (Current Asset- Inventory- Prepaid Expense)/ Current Liability |
| =(2139000-683100-351900)/690000=1.6 |
| Previous year |
| Working Capital=(Current Assets - Current Liabilities) |
| Working capital= 1560000-600000=$960000 |
| Current Ratio:- Current Asset/ Current Liability |
| =(1560000/600000)= 2.6 |
| Quick Ratio:- (Current Asset- Inventory- Prepaid Expense)/ Current Liability |
| =(1560000-475800-304200)/600000=1.3 |
| b. The Liquidity of Nilo has increase from the preceeding year to the current year . The Wrking capitotal , current ratio, and quick ratio all incresed. Most of these changes are resut of an increased in Current Asset relative to current liabilities. |
ekkarill92 answered 1 year agoRelated Solutions
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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:
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Current assets:
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Accounts and notes receivable
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Inventories
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Prepaid expenses
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Current Position Analysis The following data were taken from the balance sheet of Nilo Company at...
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The following data were taken from the balance sheet of Nilo
Company at the end of two recent fiscal years:
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Current assets:
Cash
$334,400
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Marketable securities
387,200
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Accounts and notes receivable
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158,400
93,600
Inventories
798,600
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Prepaid expenses
411,400
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Marketable securities
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Accounts and notes receivable
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Inventories
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The following data were taken from the balance sheet of Nilo Company at the end of...
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Current Year
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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
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$1,792,000
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Accounts and notes payable
(short-term)
$371,200
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Accrued liabilities
268,800
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Company at the end of two recent fiscal years:
Current Year
Previous Year
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$492,500
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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
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$2,232,000
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(short-term)
$417,600
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344,100
252,000
Accounts and notes receivable
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140,700
84,000
Inventories
880,400
658,800
Prepaid expenses
453,600
421,200
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$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
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$458,700
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531,100
390,600
Accounts and notes receivable
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217,200
130,200
Inventories
1,546,400
1,134,600
Prepaid expenses
796,600
725,400
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$2,728,000
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$411,800
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Total current liabilities
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