Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the current portion of a company's balance sheets

The current portion of a company's balance sheets for the past three years are as...

80.2K

Verified Solution

Question

Accounting

The current portion of a company's balance sheets for the past three years are as follows:

20Y1

20Y2

20Y3

Cash

$ 97

$ 154

$110

Accounts receivable

885

770

785

Inventory

1,020

902

1,075

Other current assets

23

44

40

Total current assets

$ 2,025

$ 1,870

$ 2,010

Notes payable

490

486

592

Current portion LTD

68

66

62

Accounts payable

551

528

473

Accrued expenses

155

143

136

Other current liabilities

117

99

91

Total current liabilities

$ 1,381

$ 1,322

$ 1,354

Which of the following best describes the company's liquidity over the past three years?

The companys liquidity indicators remained relatively stable over the three year period. The companys liquidity indicators were mixed as the quick ratio improved but the current ratio declined over the three year period. The companys current ratio and quick ratio improved over the three year period indicating strong liquidity. The companys working capital position and quick ratio declined to their lowest points in 20Y3 indicating weakening liquidity.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Which answer best describes the following text?A shipwrecked man afloat on the ocean, surrounded by...

Chemistry
1.2K views

Consider the following data on some weak acids and weak bases: acid Ka name formula acetic acid HCH3CO2 ×1.810?5 hydrocyanic acid HCN ×4.910?10 base Kb name formula pyridine C5H5N ×1.710?9 aniline C6H5NH2 ×4.310?10 Use this data to...

Physics
1.2K views

Six similar bulbs are connected as shown in the figure with a DC source of...

Geometry
1.2K views

NAME Perimeter Problems page 2 of 2 3 Jacob and his dad are going to...

Basic Math
1.2K views

X 2x 5 Submit Answer 45 Need Help Enter a fraction integer or exact decimal...

Statistics
1.2K views

For employees at a large company the mean number of overtime hours worked each week...

Algebra
1.2K views

asymptotes horizontal asymptotes and holes Notes 5 4 5 5 Show complete work on your...

Algebra
1.2K views

The area of the rectangular piece of cardboard shown below is 238 square inches The...

Accounting
1.2K views

The following is a note accompanying a financial statement of International Paper Company: Plant,...

Accounting
1.2K views

Problem 3-05A a-g (Part Level Submission) On November 1, 2020, the account balances of Hamm...

Accounting
1.2K views

Instructions: PLEASE ONLY SELECT THE CORRECT LETTER CHOICE AT THE END. Use the following balance...

Finance
1.2K views

What are some financial policies unique to Medicare?