Current Position Analysis The following data were taken from the balance sheet o
ID: 2583265 • Letter: C
Question
Current Position Analysis The following data were taken from the balance sheet of Bock Suppliers Company Current Year 568,500 658,200 269,300 493,700 254,300 Previous Year $448,400 504,500 168,100 323,900 207,100 Cash Temporary investments Accounts and notes receivable (net) Prepaid expenses Total current assets $2,244,000 $1,652,000 Accounts and notes payable 394,400 285,600 680,000 $413,000 177,000 $590,000 (short-term) Accrued liabilities Total current liabilities a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Current Year Previous Year Working capital 2. Current ratio 3. Quick ratio b. The liquidity of Bock Suppliers 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. Previous Next Submit Test for Gra All work saved.Explanation / Answer
Answer:- The financial data & ratios for this year are as follows:-
1)- Working Capital=Current Assets-Current Liabilities
Current Year =$2244000-$680000 = $1564000
Previous Year=$1652000-$590000=$1062000
2)-Current Ratio:- Current Assets/ Current Liabilities
Current Year =$2244000/$680000 = 3.3
Previous Year=$1652000/$590000= 2.8
3)-Acid-test Ratio= Current assets-Inventory-Prepaid expenses/Current Liabilities
Current Year =$2244000-$493700-$254300/$680000
=$1496000/$680000 =2.2
Previous Year=$1652000-$323900-$207100/$590000
=$1121000/$590000 =1.9
Particulars Current Year Previous Year Remark Working Capital $1564000 $1062000 Increase by $502000 Current Ratio 3.3 2.8 Increase by 0.5 Acid-Test Ratio 2.2 1.9 Increase by 0.3Related Questions
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