Question: Current position analysis The following data were taken from the balance sheet of Mossberg Co. Dec. 31,2014 Dec. 31, 2013 ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Cash $ 700,000 $
Current position analysis
The following data were taken from the balance sheet of Mossberg Co.
Dec. 31,2014 Dec. 31, 2013
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Cash $ 700,000 $ 600,000
Marketable securities 800,000 620,000
Accounts and notes receivable (net) 920,000 780,000
Inventories 600,000 500,000
Prepaid expenses 500,000 500,000
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Total current assets $ 3,520,000 $ 3,000,000
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Accounts and notes payable (short - term) $ 800,000 $ 750,000
Accrued liabilities 300,000 250,000
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Total current liabilities $1, 100,000 $ 1, 000,000
Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
What conclusion can be drawn from these data as to the company's ability to meet its currently maturing debts?
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