The following data were taken from the balance sheet of Albertini Company at the end...
70.2K
Verified Solution
Link Copied!
Question
Accounting
-
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 $285,500 Marketable securities 425,900 326,400 Accounts and notes receivable (net) 531,700 408,100 Inventories 343,200 210,600 Prepaid expenses 146,800 89,400 Total current assets $1,820,000 $1,320,000 Current liabilities: Accounts and notes payable (short-term) $404,000 $352,000 Accrued liabilities 296,000 248,000 Total current liabilities $700,000 $600,000
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 $fill in the blank 1 $fill in the blank 2 2. Current ratio fill in the blank 3 fill in the blank 4 3. Quick ratio fill in the blank 5 fill in the blank 6
b. The liquidity of Albertini has from the preceding year to the current year. The working capital, current ratio, and quick ratio have all . Most of these changes are the result of an in current assets relative to current liabilities.
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 | $285,500 | ||||||
| Marketable securities | 425,900 | 326,400 | ||||||
| Accounts and notes receivable (net) | 531,700 | 408,100 | ||||||
| Inventories | 343,200 | 210,600 | ||||||
| Prepaid expenses | 146,800 | 89,400 | ||||||
| Total current assets | $1,820,000 | $1,320,000 | ||||||
| Current liabilities: | ||||||||
| Accounts and notes payable (short-term) | $404,000 | $352,000 | ||||||
| Accrued liabilities | 296,000 | 248,000 | ||||||
| Total current liabilities | $700,000 | $600,000 | ||||||
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 | $fill in the blank 1 | $fill in the blank 2 | |||||
| 2. Current ratio | fill in the blank 3 | fill in the blank 4 | |||||
| 3. Quick ratio | fill in the blank 5 | fill in the blank 6 | |||||
b. The liquidity of Albertini has from the preceding year to the current year. The working capital, current ratio, and quick ratio have all . Most of these changes are the result of an in current assets relative to current liabilities.
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.