Irvin Furniture Company has requested that you determine whether the company's ability to pay its current liabilities

Question:

Irvin Furniture Company has requested that you determine whether the company's ability to pay its current liabilities and long-term debts improved or deteriorated during 2016. To answer this question, compute the following ratios for 2016 and 2015. Use Exhibit 13-8 as a model. Round your answers to two decimal places.
a. Net working capital
b. Current ratio
c. Quick (acid-test) ratio
d. Debt ratio
e. Times-interest-earned ratio
Summarize the results of your analysis in a short paragraph

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a Networking capital Current assets Current liabilities 2016 420000 217000 203000 2015 474000 113000 ...View the full answer

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Financial Accounting

ISBN: 978-0134127620

11th edition

Authors: Walter Harrison, Charles Horngren, William Thomas, Wendy Tietz

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Question Posted: Aug 01, 2016 01:54 PM

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Irvin Furniture Company has requested that you determine whether the company's ability to pay its current liabilities

Question:

2016 2015 Cash S 22,000 48,000 26,000 19,000 Net receivables....123,000 132,000 Prepaid expenses... Total assets. 14,000 6,000 e... 217,000 Income from o 250,000 130,000 Interest expense.... 38,000 46,000

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a Networking capital Current assets Current liabilities 2016 420000 217000 203000 2015 474000 113000 ...View the full answer

Financial Accounting

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