How to calculate the current ratio and working Capital?

 

If the current ratio decreases or increases what is the major causes of change?

 

How do you know if your working capital is sufficient?

 

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Cash Accounts Receivable Inventory Total Current Assets Plant and Equipment Accumulated Depreciation Total Fixed Assets Total Assets Accounts Payable Current Debt Long-Term Debt Total Liabilities Common Stock Retained Earnings Total Equity Total Liabilities & Owners Equity COOKIE SETTINGS Andrews $55,888 $10,480 $4,322 $70,691 $95,200 ($28,805) $66,395 $137,085 $5,749 $15,733 $36,100 $57,582 $32,137 $47,366 $79,503 $137,085 10.2 Balance Sheet Baldwin $17,706 $17,495 $18,333 $53,535 $73,700 ($24,190) $49,510 $103,045 $13,337 $3,733 $25,200 $42,270 $10,937 $49,838 $60,774 $103,045 10.3 Cash Flow Statement Chester $23,072 $5,582 $10,072 $38,726 $46,800 ($19,975) $26,825 $65,551 $3,251 $0 $20,456 $23,707 $11,437 $30,407 $41,844 $65,551 Digby $45,537 $7,815 $0 $53,352 $38,400 ($13,453) $24,947 $78,298 $2,902 $4,400 $17,264 $24,566 $10,937 $42,796 $53,733 $78,298 Cash Accounts Receivable Inventory Total Current Assets Plant and Equipment Accumulated Depreciation Total Fixed Assets Total Assets Accounts Payable Current Debt Long-Term Debt Total Liabilities Common Stock Retained Earnings Total Equity Total Liabilities & Owners Equity COOKIE SETTINGS Andrews $55,888 $10,480 $4,322 $70,691 $95,200 ($28,805) $66,395 $137,085 $5,749 $15,733 $36,100 $57,582 $32,137 $47,366 $79,503 $137,085 10.2 Balance Sheet Baldwin $17,706 $17,495 $18,333 $53,535 $73,700 ($24,190) $49,510 $103,045 $13,337 $3,733 $25,200 $42,270 $10,937 $49,838 $60,774 $103,045 10.3 Cash Flow Statement Chester $23,072 $5,582 $10,072 $38,726 $46,800 ($19,975) $26,825 $65,551 $3,251 $0 $20,456 $23,707 $11,437 $30,407 $41,844 $65,551 Digby $45,537 $7,815 $0 $53,352 $38,400 ($13,453) $24,947 $78,298 $2,902 $4,400 $17,264 $24,566 $10,937 $42,796 $53,733 $78,298

Answer rating: 100% (QA)

To calculate the current ratio you divide current assets by current liabilities The formula is Current Ratio Current Assets Current Liabilities Working capital is calculated by subtracting current lia... View the full answer