Homework SourseCurrent Position Analysis The following data were taken from
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 |
Solution
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 |
