1 The following data were taken from the balance sheet of Nilo Company at the end...

  

Transcribed Image Text:

1 The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current assets: Cash Marketable securities Accounts and notes receivable (net) Inventories Prepaid expenses Total current assets Current liabilities: Accounts and notes payable (short-term) Accrued liabilities. To currer liabilities Current Year $622,400 720,700 294,900 1,029,600 530,400 $3,198,000 $452,400 327,600 $780,000 Previous Year $516,800 581,400 193,800 663,700 424,300 $2,380,000 $476,000 204,000 $680,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current Year Previous Year 1. Working capital 2. Current ratio $ 2,418,000 V 4.1 3. Quick ratio b. The liquidity of Nilo has improved increase 1,700,000 $ 3.5 from the preceding year to the current year. The working capital, current ratio, and quick "atio have all inc in current assets relative to current liabilities. 1 The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current assets: Cash Marketable securities Accounts and notes receivable (net) Inventories Prepaid expenses Total current assets Current liabilities: Accounts and notes payable (short-term) Accrued liabilities. To currer liabilities Current Year $622,400 720,700 294,900 1,029,600 530,400 $3,198,000 $452,400 327,600 $780,000 Previous Year $516,800 581,400 193,800 663,700 424,300 $2,380,000 $476,000 204,000 $680,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current Year Previous Year 1. Working capital 2. Current ratio $ 2,418,000 V 4.1 3. Quick ratio b. The liquidity of Nilo has improved increase 1,700,000 $ 3.5 from the preceding year to the current year. The working capital, current ratio, and quick "atio have all inc in current assets relative to current liabilities.

Answer rating: 100% (QA)

Answer a To determine the working capital current ratio and quick ratio for each year well use the f... View the full answer