Use the following excerpt of Dragonfly Corporation's asset balances to compute Dragonfly's working capital and current ratio
Question:
Use the following excerpt of Dragonfly Corporation's asset balances to compute Dragonfly's working capital and current ratio for 2019 and 2018. Comment on Dragonfly's liquidity and changes in liquidity from 2018 to 2019. Dragonfly's current liabilities are $89,754 million and $82,271 million in 2019 and 2018. respectively.
Assets (dollarsin millions) 2019 2018 Cuirent assets $ 13,420 $ 19,355 Cash and cash equivaents Marketable secur ties 7,623 2,394 Accounts rece vab e trade – net 22,120 20 872 47,415 Inventories 45,630 Prepaid expenses and other receivables 1.264 1,312 89 515 Total current assets 91,890 Property, p ant andequ pment – net 67045 65 762 Other assets 3,773 3770 Total assets $162,708 $159,047
Step by Step Answer:
2019 2018 Working Capital Computation Total current assets 91890 ...View the full answer
Intermediate Accounting
ISBN: 978-0134730370
2nd edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Related Video
The current ratio is a financial ratio that measures a company\'s ability to pay its short-term obligations with its short-term assets. It is calculated by dividing a company\'s current assets by its current liabilities. The formula for calculating the current ratio is: Current Ratio = Current Assets / Current Liabilities Current assets are assets that can be converted to cash within one year, while current liabilities are debts that are due within one year. A current ratio of 1:1 or greater is generally considered good, as it indicates that a company has enough current assets to cover its current liabilities. A current ratio of less than 1:1 may suggest that a company may have difficulty meeting its short-term obligations. It\'s important to note that the current ratio is just one of many financial ratios that can be used to assess a company\'s financial health. It should be used in conjunction with other financial ratios and qualitative factors to make informed decisions about investing or lending to a company.
Students also viewed these Business questions
-
Use the excerpt of Dragonfly Corporations balance sheet and its income statement below to compute Dragonflys profit margin and return on assets for 2015 and 2016. Comment on Dragonflys profitability...
-
Use the excerpt of Dragonfly Corporations asset balances below to compute Dragon-flys working capital, and current ratio for 2016 and 2015. Comment on Dragonflys liquidity and changes in liquidity...
-
Use the following excerpt from Dragonfly Corporation's balance sheer and its income statement to compute Dragonfly's profit margin and return on assets for 2018 and 2019. Comment on Dragonfly's...
-
The mass of the crane?s boom is 9000 kg. Its weight acts at?G. The sum of the moments about?P?due to the boom?s weight, the force exerted at?B?by the cable?AB,?and the force exerted at?C?by the...
-
Before the discovery of the neutron, one theory of the nucleus proposed that the nucleus contains protons and electrons. For example, the helium-4 nucleus would contain 4 protons and 2 electrons...
-
What do activity ratios measure?
-
Why is it advisable to obtain a written confession from the subject of an investigation?
-
Kara Shin is a licensed CPA. During the first month of operations of her business, Kara Shin, Inc., the following events and transactions occurred. May 1 Stockholders invested $20,000 cash in...
-
Calculate the magnitude of the force on the charge q, given that the square is 10.0 cm on a side and q 9a9b = +7.46 C and qc = qa = -7.46 C. = 2.00 C, given that N
-
Carina consumes two goods, X and Y, both of which she likes. In month 1 she chooses basket A given budget line BL1. In month 2 she chooses B given budget line BL2, and in month 3 she chooses C given...
-
Use Johnson & Johnson's 2016 Annual Report, 10-K, to answer the following questions. You can locate Johnson & Johnson's financial statements on its web site, the Securities and Exchange Commission's...
-
The following items are from the financial statements of Tall Oak Company. Compute Tall Oak's debt-to-equity ratio and interest coverage ratio for 2018 and 2019. Comment on Tall Oak's solvency and...
-
If you were an investment banker, how would you determine the offering price of an IPO?
-
Which reaction is likely coupled with hydrolysis of ATP? O DNA synthesis and Joining monosaccharides together O Converting proteins into amino acids O DNA synthesis and Converting proteins into amino...
-
Describe why the results would not be valid if the solvent hit the edge of the paper before the chromatogram was removed from the beaker.
-
How many moles of N2 are produced from exactly 0.1265 moles of Na(N3)2 according to the reaction: 4 Na(N3)2 (s) + O2(g) 12 N2 (g) + 2 Na2O(s)? 0.3795 moles 0.1265 moles O 0.2530 moles 1.518 moles
-
In a container containing Ne, N2, and F2, what is the mole fraction of Ne if the N2 mole fraction is 0.22 and the F2 mole fraction is 0.58? O 0.30 O 0.10 O 0.50 O 0.20
-
(5 points) 2. Nomenclature. Name the following aromatic compounds using the IUPAC substitutive naming system, where appropriate. Note: The order of priority for functional groups in substitutive...
-
The two pulleys shown may be operated with the V belt in any of three positions. If the angular acceleration of shaft A is 6 rad/s2 and if the system is initially at rest, determine the time required...
-
On August 31, 2012, the balances of the accounts appearing in the ledger of Wood Interiors Company, a furniture wholesaler, are as follows:Prepare the August 31, 2012, closing entries for Wood...
-
Elegant Homes Corporation provided the following statement of net income on December 31, 2017, before the disposal of a business segment. The income statement includes the results of operations of...
-
Dane Products, Incorporated provided the following information for the current year ended December 31. Required Prepare a Statement of Stockholders Equity for the current year. Retained Earnings,...
-
Bluebird Products, Inc. provided the following information from its current- year trial balance. Required a. Prepare a single step income statement for the year ended December 31. The tax rate is...
-
discuss what you understand about the concept of "rule of law" in the context of constitutional law. identify at least 1 salient feature/principle and explain why you think it is important.?
-
Writing a reflective journal transition phase to endemic and has not entered the endemic phase.
-
McCann Co. has identified an investment project with the following cash flows. Year Cash Flow 1 2 $ 530 690 3 875 4 1,090 If the discount rate (r) is 10 percent, what is the present value of these...
Study smarter with the SolutionInn App