Current Position Analysis The following data were taken from the balance sheet of Albertini Company...
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Accounting
Current Position Analysis
The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
$372,400
Marketable securities
425,900
Accounts and notes receivable (net)
531,700
Inventories
343,200
Prepaid expenses
146,800
Total current assets
$1,820,000
Current liabilities:
Accounts and notes payable (short-term)
$404,000
Accrued liabilities
296,000
Total current liabilities
$700,000
a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
Current Year
Previous Year
1. Working capital
?
?
2. Current ratio
?
?
3. Quick ratio
?
?
b. The liquidity of Albertini has (improved or declined) from the preceding year to the current year. The working capital, current ratio, and quick ratio have all (increased or decreased). Most of these changes are the result of an (increase or decrease) in current assets relative to current liabilities.
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