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28 Sep 2019
Current Ration
Calculate the current ratiofor Smith & Son Inc for 2015 and 2015 and comment on thecompanyâs working capital position. Did the companyâs ability topay its current liabilities improve over the two year? Current ration = Current Assets/Currentliabilities
Smith & Sons,Inc Balance Sheet Decemober 31, 2016 and2015 (In millions) 2016 2015 Assets Current assets Cash and cash equivalents 200 400 Accounts receivable 900 800 Inventory 500 650 Other Current assets 400 250 Total Current assets 2000 2100 Property, plant &equipment (net) 2,600 2,500 Other Assets 5,700 5,900 Total assets 10,300 10,500 Labilities and Stockholders'eEquity Current Liabilites 3,000 2,900 Long-term liabilities 5,000 5,400 Total Labilities 8,000 8,300 Stockholders'sequity-common 2,300 2,200 Total Labilities andStockholders' Equity 10,300 10,500
| Current Ration |
| Calculate the current ratiofor Smith & Son Inc for 2015 and 2015 and comment on thecompanyâs working capital position. Did the companyâs ability topay its current liabilities improve over the two year? | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current ration = Current Assets/Currentliabilities
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Jarrod RobelLv2
28 Sep 2019
Related questions
Quick Ratio
Calculate the quick ration for Smith& Sons Inc for 2015 and 2016 and comment on the companyâsworking capital position. Did the companyâs ability to pay itscurrent liabilities improve over the two years?
Quick ratio = (cash and cashequivalents + Short term investments + Accounts receivable)/CurrentLiabilities
| Smith & Sons,Inc | ||||
| Balance Sheet | ||||
| Decemober 31, 2016 and2015 | ||||
| (In millions) | 2016 | 2015 | ||
| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | 200 | 400 | ||
| Accounts receivable | 900 | 800 | ||
| Inventory | 500 | 650 | ||
| Other Current assets | 400 | 250 | ||
| Total Current assets | 2000 | 2100 | ||
| Property, plant &equipment (net) | 2,600 | 2,500 | ||
| Other Assets | 5,700 | 5,900 | ||
| Total assets | 10,300 | 10,500 | ||
| Labilities and Stockholders'eEquity | ||||
| Current Liabilites | 3,000 | 2,900 | ||
| Long-term liabilities | 5,000 | 5,400 | ||
| Total Labilities | 8,000 | 8,300 | ||
| Stockholders'sequity-common | 2,300 | 2,200 | ||
| Total Labilities andStockholders' Equity | 10,300 | 10,500 | ||
