Storm Weather Industries manufactures weather equipment. Selected financial data
ID: 2734435 • Letter: S
Question
Storm Weather Industries manufactures weather equipment. Selected financial data for Storm Weather is presented below.
As of
Dec. 31, 2012
Dec. 31, 2011
$ 376,843
$ 205,088
166,106
187,064
258,387
289,100
424,493
391,135
55,369
25,509
83,053
85,029
1,364,251
1,182,925
1,384,217
625,421
568,003
425,000
$3,316,471
$2,233,346
$ 206,376
$ 70,419
155,000
168,000
254,111
286,257
273,658
166,983
97,735
178,911
986,880
870,570
500,000
300,000
215,017
262,404
1,701,897
$1,432,974
$ 425,250
$ 125,000
356,450
279,951
832,874
395,421
1,614,574
800,372
$3,316,471
$2,233,346
$4,685,340
(2,942,353
(884,685
858,302
(45,240
813,062
(325,609
$ 487,453
$1,256,084
$745,862
Storm Weather's current ratio changed by what percentage from 2011 to 2012?
As of
Explanation / Answer
Current ratio = current assets/current liabilities
Current ratio for 2011: Current assets = 1,182,925. Current liabilities = 870,570
Current ratio = 1,182,925/870,570 = 1.36
Current ratio for 2012: Current assets = 1,364,251. Current liabilities = 986,880
Current ratio = 1,364,251/986,880 = 1.38
% change in current ratio = (2012's ratio - 2011's ratio)/2011's ratio
= (1.38-1.36)/1.36
= 0.02/1.36
= 1.74%
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