Current Position Analysis The following data were taken from the balance sheet o

Question

Current Position Analysis

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

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 Cash $359,100 $264,000 Temporary investments 415,800 297,000 Accounts and notes receivable (net) 170,100 99,000 Inventories 1,205,800 872,300 Prepaid expenses 621,200 557,700 Total current assets $2,772,000 $2,090,000 Accounts and notes payable (short-term) $365,400 $385,000 Accrued liabilities 264,600 165,000 Total current liabilities $630,000 $550,000

Explanation / Answer

working notes:

Current year previous year 1. working capital 2,142,000 1,540,000 2.current ratio 4.4 3.8 3.quick ratio 1.5 1.2

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