Return to course BusinessCourse Course Content / Module 4 / Module 4 HW Module 4 HW Started on Saturday, 22 June 2024, 7:02 PM State Finished Question 2 Partially correct Mark 0.50 out of 3.00 Working Capital and Short-Term Liquidity Ratios Richardson Company has a current ratio of 1.50 on December 31, Year 9. The following year-end data for the firm's current asset accounts is also available: Richardson Company December 31 Account Balances $360, $350 $350,000 $300,000 $300, $264, $250,000 $240, $231, $220, $200,000 $192 $168, $165, $150,000 $100,000 $50,000 $0 Year 9 Year 3 Year 1 Year 5 Year 6 Year 7 Year 8 Year 11 Year 2 Year 10 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 X b. What is the firm's working capital on December 31, Year 9? 88,000 Calculate the following ratios for Year 9 Ratio Numerator Denominator Result c. Quick Ratio 96,000 x : 176,000 x 0.55 d. Operating-cash-flow-to-current-liabilities ratio (also called current cash debt coverage) 98,000 : 176,000 % = 0.56Richardson Company December 31 Account Balances $360, $350,000 $350, $300,000 $300, $280, $264, $250.000 $240, $231, $220, $200,000 $192, $168, $165, $150,000 $100,000 $50,000 Year 5 Year 9 Year 1 Year 2 Year 3 Year 4 Year 6 Year 8 Year 7 Year 10 Year 11 hardson 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? $ 620,000 X b. What is the firm's working capital on December 31, Year 9? $ 310,000 Calculate the following ratios for Year 9: Ratio Numerator Denominator Result C. Quick Ratio 580,000 x : 620,000 x = 0.94 d. Operating-cash-flow-to-current-liabilities ratio (also called current cash debt coverage) 8,000 : 620,000 x = 0.16