16.06 Current Position Analysis

Current position analysis The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. b. The liquidity of Nilo has from the preceding year to the current year. The working capital, current ratio, and quick ratio have all Most of these changes are the result of an in current assets relative to current liabilities. Feedback - Check My Work a.1. Subtract current liabilities from current assets. a.2. Divide current assets by current liabilities. a.3. Divide quick assets by current liabilities. Quick assets are cash, temporary