Exercise 17-6 (Algorithmic) Current Position Analysis

The following data were taken from the balance sheet of Bock Suppliers Company:

				Dec. 31, 2012			Dec. 31, 2011
Cash				$97,400			$123,400
Temporary investments				104,000			135,200
Accounts and notes receivable (net)				95,600			147,400
Inventories				133,700			182,700
Prepaid expenses				526,300			49,300
	Total current assets			$957,000			$638,000
Accounts and notes payable
	(short-term)			$191,400			$203,000
Accrued liabilities				138,600			87,000
	Total current liabilities			330,000			290,000

a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.

			2012			2011
Working capital:	$			$
Current ratio:
Quick ratio:

b. What conclusions can be drawn from these data as to the company's ability to meet its currently maturing debts?

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