Course Content $\frac{?}{?}$ Module $\frac{4}{?}$ Module $4HW$

Module $4HW$

Started on Saturday, $22$ June $2024,7$:$02$ PM

State Finished

Question $2$ Partially correct Mark $0\mathrm{.}50$ out of $3\mathrm{.}00$

Working Capital and Short$-$Term Liquidity Ratios

Richardson Company has a current ratio of $1\mathrm{.}50$ on December $31,$ Year $9.$ The following year$-$end data for the firm's current asset accounts is also available:

Richardson Company's current liabilities at the beginning of Year $9$ were $$120,000,$ and during the year its operating activities provided a cash flow of $$98,000.$

a$.$ What are the firm's current liabilities on December $31,$ Year $9?$

$$176,000$

b$.$ What is the firm's working capital on December $31,$ Year $9?$

$$88,000$

Calculate the following ratios for Year $9$ :